By: Mahmoud Gamal

Dubai – Mubasher: Foreign traders on the UAE’s stock markets were buyers in April, reflecting the opportunities present in local stocks despite the fluctuations seen across some global markets and in oil prices.

The total value of foreign purchases in the Abu Dhabi Securities Exchange (ADX) and the Dubai Financial Market (DFM) reached a combined AED 5.04 billion ($1.38 billion) in April 2017 against AED 4.61 billion ($1.26 billion) in sales, resulting in net purchases of AED 430 million ($117.09 million), according to data compiled by Mubasher.

Foreign buying accounted for 57.3% of total deals recorded last month, which totalled AED 8.78 billion, the data showed.

Analysts told Mubasher that the rise in foreign investment in the UAE’s two bourses reflects foreigners’ interest in maintaining their stock positions despite oil price fluctuations, which affected some traders’ buying appetites.

On the DFM, foreign purchases totalled AED 3.17 billion in April, while sales stood at AED 2.94 billion, registering net buying worth AED 230 million.

Meanwhile, Arab investors bought stocks worth AED 1.24 billion in last month versus AED 1.29 billion in sales, netting AED 270 million in purchases.

Foreign purchasing activity on the DFM in April increased in general and in the last week of the month in particular following the emergence of some positive indicators after banks began disclosing their financials, analyst Mostafa Hussein told Mubasher in a comment.

On the ADX, foreign buying totalled AED 1.87 billion, while sales reached AED 1.67 billion, resulting in net purchases worth AED 200 million, whereas Arab buying amounted to AED 282.52 million and selling reached AED 308.5 million, netting AED 26 million in sales.

GCC market analyst Mahmoud Diab told Mubasher that he expects foreign investors and portfolios to continue purchasing UAE stocks, which will positively impact market performance and liquidity levels in general in the coming period.

Translated by: Nada Adel Sobhi