Turnover on Dubai bourse plunges to lowest in six years

Value of shares on Dubai bourse fell to AED69.7bn in 2010 from AED173.5bn in 2009
Turnover on Dubai bourse plunges to lowest in six years
DFM DECLINE: Turnover on the Dubai Financial Market declined nearly 60 percent last year (Getty Images)
By Claire Ferris-Lay
Wed 05 Jan 2011 05:03 PM

Turnover on the Dubai Financial Market declined nearly 60 percent last year, the lowest in six years, the exchange’s annual report said on Wednesday.  

The value of shares on the bourse slumped to AED69.7bn ($18.9bn) from AED173.5bn a year earlier.

Overall performance decreased 9.6 percent to 1630.5 points compared to 1803.6 the previous year while market capitalisation dropped 6.6 percent to AED 199.1bn.

UAE stock exchanges have been hit hard by the global downturn. The DFM merged its trading platform with rival Nasdaq Dubai in June in a bid to boost liquidity while the governments of Dubai and Abu Dhabi are in talks to merge the bourses.

Real estate stocks were the most traded in terms of value contributing to 67.3 percent of the total traded followed by shares in the investment and financial services sector, which accounted for 15.1 percent of the total value. Shares in the communications sector accounted for just 3.6 percent or AED 2.5bn.

Foreign investors bought 44.2 percent (or AED 30.8bn) of the total stock traded and sold AED 30.6bn of stock compared to 23 percent of stock bought by institutional investors and 21.8 percent of sold shares.

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