Financial markets are flying at historic levels in the first quarter of the year, amid anticipation of new listings

10.17 billion dirhams net purchases of foreigners in UAE shares in first quarter

268.77 billion dirhams, UAE equity gains during first quarter, pending new listings

123.87 billion dirhams, UAE stock liquidity in 3 months

Expectations of continued strong performance of UAE shares, amid anticipation of announcement of financial results

The UAE financial markets were able to continue the strong performance they have seen over the past year, especially in the last quarter, to be able to reach more record levels during the first quarter of 2022 so that the Abu Dhabi market has a new historical level reached above 9950 points, while the Dubai market closed around the highest level since November 2017 by the end of 2017 this March.

The performance of local stock markets comes despite geopolitical tensions due to the Russian-Ukrainian conflict, but it could benefit from the upward trend in global oil prices in light of the crisis, in addition to investor enthusiasm for the announced plan for listings in the UAE markets, which culminated in the first IPO of the Dubai Financial Market represented in DEWA and testifies to success. Impressive reflects on the performance of the markets, especially in March.

During the first quarter of 2022, foreigners continued to seize buying opportunities in the local financial markets, with a net purchase of 10.17 billion dirhams in the Dubai and Abu Dhabi markets combined.

The local capital markets were able to achieve significant market gains along with the listing of Abu Dhabi Ports Company in the Abu Dhabi market and the announced plan for listings in the Dubai and Abu Dhabi markets, bringing the profits in both markets to approximately 268.77 billion bring to a standstill. dirhams.

Local equities attracted high liquidity during the first quarter of 2022, with a value of 123.87 billion dirhams, in the Dubai and Abu Dhabi markets combined, concentrated in the Abu Dhabi market, with the support of 3 major stocks, namely International Holding, First Abu Dhabi and Aldar Properties.

strong performance

In turn, Kamco Invest’s deputy head of research and investment strategies, Raed Diab, said the UAE markets were still experiencing some fluctuations, but were retaining their gains as the Abu Dhabi market index continued to record new historical levels, while the Dubai index has touched levels not seen since November 2017 to reach The growth rate since the beginning of the year to almost 10%.

Diab stressed that the strong performance of the UAE markets has come with the support of local fundamentals, which remain strong in light of the initial public theses, while the Dubai Electricity and Water Authority (DEWA) intends to increase the volume to increase the supply to 17. % instead of 6.5%.

Moreover, despite the sharp fluctuations in oil prices in the recent period in light of several factors, including the military conflict between Russia and Ukraine, concerns about supplies and the suspension of pumps from the Caspian Sea pipeline consortium, while there is news of the United States’ intention to release more oil Oil is one of the strategic reserves to stem the rise in oil prices, but prices still maintain good levels and are above the oil break-even price.

Diab expects the UAE market to maintain its profits in the coming period, pending new stimulus, such as the financial results of the listed companies for the first quarter of this year, in addition to the results of the peace negotiations between Russia and Ukraine, which may stop the conflict between them and give some comfort to investors.

Dubai Financial Market

The Dubai Financial Market Index rose 10.35% during the first quarter of 2022 to 3526 points, near the highest level in 4 years and 4 months.

The performance of the index was supported by the rise in the banking index, which rose by 11.36%, while the real estate index rose by 15.86% and the investment index by 7.9%.

In the Dubai market, the shares of Dubai National Insurance and Reinsurance were the leading rising stocks during the first quarter of the year with 26.61%, followed by Dubai Investments with 25.91%.

During the period, the performance of real estate shares fluctuated as Emaar Properties rose by 22.7% around the highest level in 4 years, while Emaar Development rose by 1.83% while Union Properties fell by 20.38% and Deyaar Development with 4.74%.

The rise was dominated by bank shares as Dubai Islamic rose 14.68%, Dubai Commercial rose 14.71%, Emirates NBD rose 10.7%, Mashreq rose 3.88% and Mashreq rose 3% , 88%.

Dubai Financial Market share fell 15.14% during the first quarter, while Dubai Investments rose 25.91%.

The market value of the Dubai Financial Market recorded 437.443 billion dirhams at the end of March 2022, compared to a value of 411.468 billion dirhams at the end of December 2021, to earn 25.97 billion dirhams.

Emaar Properties shares were at the top of the shares in terms of trading value during the first quarter, with transactions worth 6.43 billion dirhams, followed by Emirates NBD with a value of 3.92 billion dirhams, then Dubai Islamic with ‘ a value of 3.13 billion dirhams.

The value of trading in the Dubai Financial Market during the first 3 months of 2022 amounted to approximately 22.84 billion dirhams.

Abu Dhabi mark

The Abu Dhabi Security Index rose 17.2% during the first quarter of 2022 to 9,951 points, the highest level ever.

The performance of the Abu Dhabi market came in conjunction with the rise in the major stocks as First Abu Dhabi rose 25.27%, topping the trading value by 21.62 billion dirhams, and the International Holding share increased by 23.88%, with a trade value of 19.61 billion dirhams, followed by Aldar Properties, which increased by 23.56%, trading with a value of AED 19.61 billion, 17.89 billion dirhams.

During the first quarter of the year, Alpha Abu Dhabi increased by 0.22%, while the Etisalat Group increased by 16.59%, while ADNOC Distribution decreased by 1.64%, ADNOC Drilling increased by 11.47% increased, Taqa decreased by 3.79%, and Dana Gas increased by 11.32%.

Abu Dhabi Commercial increased by 22.86%, Abu Dhabi Islamic increased by 27.37%, Fujairah Bank increased by 8.48%, Ras Al-Khaimah Bank increased by 16.67% and Sharjah increased by 14, 52% decreased.

The market value of the Abu Dhabi market at the end of March reached about 1.8691 trillion dirhams, compared to 1.6263 trillion dirhams at the end of last December, which increased by 242.8 billion dirhams.

In February, the Abu Dhabi Ports Group, the leading and integrated provider of port, logistics and industrial services in the UAE, announced the listing of its shares on the main market of the Abu Dhabi Securities Exchange.

The value of trading in the Abu Dhabi Securities Exchange amounted to approximately 101.03 billion dirhams, spread over 15.61 billion shares, through 545.36 thousand transactions.

Investors

In the first quarter of this year, foreign investors seized an opportunity to buy UAE shares, with a net purchase of 10.17 billion dirhams in the Dubai and Abu Dhabi markets.

In the Dubai market, foreign investors tended to buy within three months, with a net purchase of 1.79 billion dirhams, while the total shares bought during the period amounted to about 7.41 billion dirhams, compared to 5.619 billion dirhams, the value of the shares sold. .

While the Emiratis tended to sell during the period with a net sales amount of 2.08 billion dirhams, while the Arabs tended to sell with a net of 161.07 million dirhams, while the Gulf people tended to buy with a net of 444.46 million dirhams.

Foreigners also tended to buy in the Abu Dhabi market, with a net of 8.38 billion dirhams, with a total turnover of 35.61 billion dirhams.

On the other hand, Emiratis tended to sell in the Abu Dhabi market during the period with a net of 8.35 billion dirhams, with a total turnover of 158.41 billion dirhams.

In January, Arabs tended to sell in the Abu Dhabi market, with a net of 225.44 million dirhams, while Arabs of the Gulf tended to buy, with a net of 196.49 million dirhams.

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