Tuesday, 5 May 2020

Shaken markets: Foreign investors go low on #UAE stocks with record selloffs | Analysis – Gulf News

Shaken markets: Foreign investors go low on UAE stocks with record selloffs | Analysis – Gulf News:

Foreign investors remain squeamish about taking an exposure in UAE stocks, with March seeing a record shortfall in fund inflow.

“Even after being granted the MSCI emerging market status in 2013, foreign holding in DFM-listed companies remain much below desired levels,” said Vijay Valecha, Chief Investment Officer at Century Financial.

Of the 55 companies where foreign investment is permitted, foreign ownership is now at an average 10.32 per cent. Even marquee companies like Air Arabia, Commercial Bank of Dubai and Dubai Islamic Bank have foreign investments in the range of 10-20 per cent only, Valecha said.

There was significantly higher foreign selling on DFM during February, March and April, with March seeing a record shortfall in investments, equal to about Dh764 million. During April, the deficit was Dh206 million.

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