Most notably, the increasing "institutional purchase" and the strength of the banking and real estate sectors

Analysts identify the reasons for the concentration of liquidity in 8 leading companies

Economic resilience boosts the sentiment of international investors and motivates them to pour more money into stocks. Cinematographer: Ahmed Arditi

Financial analysts have identified a set of key factors behind the concentration of local stock market liquidity in eight blue-chip stocks since the beginning of the year.

They explained to Emirates Today that "the increase in institutional purchases on these shares came as a major support for their liquidity during the same period, as well as good financial results and proposed distributions."

They also pointed to the positive news of these companies, and the demand by investment funds and large financial institutions, based on expectations of good performance in the coming period.

They pointed to the strength of the banking and real estate sectors in the country, in addition to the economic flexibility enjoyed by the local market, and its good handling of geopolitical and economic variables, which raises the morale of international investors, and motivates them to inject more money into shares.

They stressed that the high prices of oil will help companies such as ADNOC, TAQA and Dana Gas to achieve good profits, which in turn will attract more investors, which will improve market liquidity on these shares.

The Eight Stocks

Eight shares of listed companies with liquidity exceeding AED 76 billion accounted for approximately 54.2% of the total value traded in the stock markets, which amounted to AED 140.45 billion.

The list of eight stocks includes: Global Holding with AED 41 billion, Alphabyi with AED 10.4 billion, Emaar Properties with AED 7.4 billion, Multiplay with AED 7.3 billion, First Abu Dhabi Bank with AED 2 billion, Emirates NBD with AED 2.1 billion, and Dubai Islamic Bank with AED 8.<> billion.

Institutional Purchase

Wadah Al-Taha, a member of the National Advisory Board at the Chartered Institute for Securities and Investment, said that "the increase in institutional purchases on these shares was a major support for their liquidity during the same period, which coincided with the announcement of good annual results and proposed distributions, in the banking sector in particular."

Financial results

For his part, Raed Diab, Vice President of Investment Research at KAMCO Investment Company, attributed the concentration of liquidity on certain stocks to the positive news of these companies, their future plans and their good financial results recorded.

"The focus we saw on certain companies and banks in the UAE markets was based on the strength of those stocks, their good solvency, and the demand by investment funds and large financial institutions, based on expectations that the performance will be good in the coming period," he said.

Economic flexibility

For his part, equity investment expert, Mahmoud Atta, stressed that the strength of the banking and real estate sectors in the country, their commitment to international standards, in addition to the economic flexibility enjoyed by the local market, its good handling of all geopolitical and economic variables, and success in overcoming many difficulties, raises the morale of international investors, and motivates them to inject more money into stocks, which is one of the most risky tools in the world of investment.

Good earnings

Aaron Leslie John, senior market analyst at Century Financial, said higher oil prices will help companies such as ADNOC, TAQA and Dana Gas make good profits, which in turn will attract more investors, improving market liquidity on these shares.

8

Shares of listed companies that acquired more than AED 76 billion in liquidity.