Foreign investors rushed to offload shares worth millions of dirhams in Abu Dhabi last year as trading volumes tumbled and global economic woes took their toll on the city's benchmark stock exchange, a report has shown.
The statistics, due to be released next week but seen by Gulf News, show that the mass selloff by foreigners, amounting to Dh339 million, was reflected in a significant drop on the Abu Dhabi Securities Exchange (ADX), which lost 11.6 per cent during the calendar year. Furthermore, foreign investors bought shares worth only Dh60 million in 2011, suggesting a major lack of confidence in the capital's bourse.
Liquidity levels have been a concern for some time on UAE markets with many investors taking their cash out of risky equities and looking to reinvest it in relatively safe havens such as government bonds or gold. Last month, index compiler MSCI once again snubbed the country for an emerging market upgrade, a move that would likely have bolstered capital inflows from abroad.
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