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DFM drops 11% in August; market capitalisation falls by over 10%

DFM drops 11% in August; market capitalisation falls by over 10%
An investor monitors electronic stock boards at the Dubai Financial Market in Dubai on 20th July 2012.

Dubai - Chinese yuan devaluation coupled with record drop in oil prices kept stock markets volatile in August.



By Abdul Basit

Published: Thu 3 Sep 2015, 12:00 AM

Last updated: Fri 4 Sep 2015, 10:42 AM

It was worst August for equities across the world following 'the great fall of China' and there was no exception for the UAE bourses. The brutal August impact continued for the second consecutive day in September as well.
The Dubai Financial Market (DFM) General Index lost more  than 11 per cent and the market capitalisation also decreased by over 10 per cent by the end of August.
Chinese yuan devaluation coupled with record drop in oil prices kept stock markets volatile in August. Globally, it was also the seventh worst August for stocks going all the way back to 1945.
The DFM Index breached the physiological barrier of 4,000 points into reverse order and decreased by 11.6 per cent to 3,662.6 points at the end of August compared to 4,143.2 points at the end of July.

Summary> The value of shares traded reached during this month Dh12.6 billion.
> The number of shares traded increased by 20.3% to reach 7.7 billion.
> The number of transactions executed during August up 43.4%.
The market capitalisation decreased fell by 10.4 per cent to reach Dh347.8 billion compared to Dh388.1 billion at the end of July. The value of shares traded reached during this month Dh12.6 billion, compared to Dh9.7 billion recorded during July, up by 29.7 per cent.
The number of shares traded increased by 20.3 per cent to reach 7.7 billion shares during this month compared to 6.4 billion shares traded during July. The number of transactions executed during August up 43.4 per cent.
At the sectoral level, the ninth sectors represented on DFM ended the month in the red, with the services index decreased the most by 16.6 per cent, and the Industrial index down by 15.8 per cent and the financial & investment services index by 15.4 per cent.
As for the sectors' contribution to trading volumes, the real estate and construction sector ranked first in terms of the traded value, to reach Dh6.7 billion, or 52.8 per cent of the total traded value in the market.
Banking sector ranked second at Dh3.7 billion or 29.2 per cent, followed by The financial & investment services sector with Dh895 million or 7.1 per cent. The transportation sector with Dh441.6 million or 3.5 per cent, the consumer and discretionary sector with Dh385.4 million or 3.1 per cent, the services sector with Dh255.5 million or 2 per cent, the Insurance sector with Dh165.7 million or 1.3 per cent, and the telecommunication sector with Dh123.8 million or 1 per cent, and the Industrial sector with Dh2 million.
The value of stocks bought by foreign investors during this month reached Dh6.2 billion comprising 49 per cent of the total traded value. The value of stocks sold by foreign investors during the same period reached Dh6.5 billion comprising 51.6 per cent of the total value traded. Accordingly, DFM net foreign investment out-flow reached Dh321.3 million.
On the other hand, the value of stocks bought by institutional investors during this month reached Dh3.5 billion comprising 27.9 per cent of the total traded value. The value of stocks sold by institutional investors during the same period reached Dh3.9 billion which constitutes 30.7 per cent of the total value traded. DFM net institutional investment out-flow amounted Dh350.4 million.
- abdulbasit@khaleejtimes.com


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