The Dubai Financial Market (DFM) was the star performer in the GCC stock markets indexes in 2012, advancing 20%, according to the annual report issued by the Securities and Commodities Authority (SCA) on the Emirates Securities Market (ESM) performance for 2012.
Commenting on the report, Sultan bin Saeed Al Mansouri, Minister of Economy and SCA Chairman, said the UAE stock markets had seen uptrend performance last year.
He said the DFM led the growth charge in the region followed by Abu Dhabi Securities Exchange (ADX) at 9.5%.
The minister noted that analyses of many analysts suggested that the stock markets had since last year actually ushered into a new cycle of recovery buoyed by vibrancy and resilient fundamentals of the local economy in contrast of the declining growth in a number of emerging economies and Euro Zone.
Improvement in trading of majority of economic sectors, the minister added, had driven market recovery in 2012. He hoped this upbeat uptrend would continue through this year as the UAE economy is projected to grow 4% driven by tremendous government spending, launch of mega projects and marked growth in key sectors like tourism, travel and trade as well as tangible improvement in real estate sector.
He added that new organisational, supervisory and legislative measures SCA introduced in 2012 like Stock Lending and Borrowing Scheme (SLBS), margin trading, short selling, market maker and liquidity provider, would assist the market to attract more liquidity.
The minister noted that compliance of Public Joint Stock Companies to disclosure and governance regulations rose to 98%, giving market confidence a shot in its arm and attracting more foreign investment.
Figures showed that net foreign investment inflow in the twin stock markets in Abu Dhabi and Dubai surge by 568% last year.
WAM
