Foreign funds back on DFM

Foreign investors are returning to the Dubai Financial Market (DFM) and their net investments in market heavyweights are gradually moving northwards, according to available figures.

With a rebound in some global markets, the recent increase in oil prices and other key positive factors such as the Dubai government's proactive measures to catalyse economic growth, the DFM General Index is now attracting foreign investors. During the week ending May 21, the DFMGI gained 1.92 per cent with foreign investors buying a net Dh89.20 million.

Interestingly, though trading volume was much higher during the previous week the index gained less than one per cent (0.49 per cent), following the bleak net buying by foreign investors at Dh3m only. It was only when they turned into heavy aggregate buyers that the index registered greater gains. Therefore, regardless of volume, it is net buying by foreign investors that seems to be driving the index.