Dubai's stock market capitalisation jumps 12% to $92bn in 2016

Dubai Financial Market (DFM) saw its capitalisation rise by more than 12 percent during 2016 to AED337.6 billion ($91.9 billion), it has been announced.

DFM’s General Index increased 12.1 percent to 3,531 points at the end of 2016 compared to 3,151 points at the end of 2015.

Indices of eight out of the nine sectors featured on the DFM ended the year in the green, with the services sector rising the most, by 36 percent. Only the industrial sector ended the year in the red, dipping by 16.7 percent.

The value of shares traded during 2016 reached AED133 billion compared to AED145.7 billion recorded in 2015, a decrease of 8.7 percent while the number of shares traded increased by 14.2 percent to reach 105.8 billion shares.

The number of transactions executed during 2016 fell by 14.4 percent to reach 1.3 million compared to 1.5 million deals carried out during in 2015.

The real estate and construction sector topped the list of the most traded sectors to reach AED57.2 billion or 43 percent of the total traded value in the market, followed by banking (AED35.3 billion or 26.5 percent).

The value of stocks bought by foreign investors during 2016 reached AED60.8 billion or 45.5 percent of the total traded value while the value of stocks sold by foreign investors during the same period reached AED60.4 billion or 45.2 percent of the total value traded.

Accordingly, the DFM’s net foreign investment inflow reached AED360.5 million.

DFM’s improved performance comes as a recent survey revealed that Middle East funds have become more bullish towards equities in the region.

The poll of 14 leading fund managers, conducted in November by Reuters, found 43 percent expect to increase their allocation to Middle East equities over the next three months and 7 percent to reduce them.

This is the most bullish balance towards equities since January, and compares to ratios of 14 percent and 7 percent in the previous month’s survey.