Supported by strong gains for "leadership" and an increase in investor appetite with the succession of issuances
Local stocks add 1.17 trillion dirhams to their market capital during 2022
The Dubai Financial Market index rose 4.4% by the end of 2022. Photo: Ahmed Arditi
The market value of local stocks increased by about 1.17 trillion dirhams during the year 2022, supported by strong gains for the leading stocks and an increase in investor appetite with the succession of new initial public offerings.
The market value of shares increased from 2.038 trillion dirhams at the end of December 2021 to 3.205 trillion dirhams at the end of December 2022 transactions (yesterday), distributed by 2.624 trillion dirhams for the Abu Dhabi Stock Exchange, and 580.745 billion dirhams for the Dubai Financial Market.
The Abu Dhabi General Market Index rose during the 12 months of 2022 by 20.3%, or the equivalent of 1,722.73 points, to close at 10,211,090 points at the end of December, compared to 8,488.36 points at the end of 2021.
The Dubai Financial Market index increased by about 4.4%, or the equivalent of 140.16 points, to close at 3,336.07 points at the end of December 2022, compared to its closing at 3,195.91 points at the end of last year, mainly supported by gains in banking and real estate stocks.
In addition, the expert in financial markets, Jamal Ajaj, told «Emirates Today» that the state of anticipation and awaiting results will control the performance of investors in early 2023, indicating that some investment portfolios can be entered on stocks that have declined during the recent period and have become given an opportunity. Good through expected distributions.
He explained that one of the most important events that will affect the performance of the local stock markets during the beginning of the new year is the continued rise in interest rates due to the competition of the return on deposits with the return on investment in stocks that came under pressure during 2022, as well as the high cost of lending to invest in stocks.
In turn, Vice President of the Research Department at Kamco Invest, Raed Diab, stated that there is a state of waiting at the beginning of the new year to announce the results of the companies' business, as the banking sector is expected to benefit from higher interest rates several times in 2022.
Diab predicted that the local markets would tend to achieve another year of gains, but at a slower pace than in 2022, which recorded significant gains.
He added that the expectations of international institutions indicate that the UAE will witness good growth during 2023.
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