News

Abu Dhabi sees rise in institutional investors

Abu Dhabi2Institutions account for a rising proportion of investor registrations on Abu Dhabi's stock exchange, hinting at a maturing of the Gulf stock market that could help to stabilise prices in the long term. Institutions accounted for 9% of investor registrations in the first nine months of this year, according to data shared by the Abu Dhabi Securities Exchange (ADX) with Funds Global MENA. In 2013, institutions accounted for just 3% of overall registrations in the year and in 2014 they accounted for 7%. Institutional investors, such as pension funds, insurance firms and asset managers, are said to have a beneficial effect on stock markets because they tend to be long-term investors that make decisions based on fundamental analysis. Individual investors, who still account for majority of equity trading in the Gulf countries, are said to be prone to panic buying and selling, which can exaggerate stock price volatility. Volatility has been a feature of the Gulf stock markets this year, with the index of ADX currently 7% below its position at the start of the year having fallen sharply in August. Although institutional registrations have risen in proportional terms, the overall number of investor registrations on ADX so far this year is lower than in 2014, which may be the result of recent volatility. There were 19,251 investor registrations on ADX in 2014, of which 1,309 were institutions. In the first nine months of this year, there have been 7,360 registrations, of which 617 were institutions. ©2015 funds global mena 

Executive Interviews

INTERVIEW: Totally mega

Jun 13, 2018

In 2016, global consulting firm PWC forecast the emergence of five global ‘megatrends’ in the next two decades. Stephen Anderson, its Middle East clients and markets leader, talks about their...

INTERVIEW: Protecting the investment

Nov 23, 2017

Rasmala’s trade finance fund recently passed $100 million in assets. Doug Bitcon, head of credit strategies, explains why he has to be hands-on.

Roundtables

MENA ROUNDTABLE: ‘The story is about reforms’

Jun 13, 2018

Our cross-industry panel discuss the positive backdrop in Egypt, the Dana Gas controversy and the potential index upgrades of Saudi Arabia and Kuwait. Chaired by George Mitton in Dubai.

SOUTH AFRICA ROUNDTABLE: Airline syndrome

Jun 13, 2018

Our panellists tell us that instead of launching competing national projects, African countries should work together for the sake of a bigger capital market. Chaired by George Mitton in Cape Town.