Foreign investors, including both institutional and retail participants, were net buyers on GCC stock markets during Q3-2024, with the Abu Dhabi stock market recording the largest inflows as total net buying surged to $1.9 billion.
The quarter saw a net buying of $3.71 billion across the GCC, up from $3.66 billion in Q2-2024. "The trend has been positive since the beginning of the year, with continuous buying by foreign investors throughout the first nine months. The most significant buying was observed in Abu Dhabi, with total net buying reaching $1.9 billion, followed by Saudi Arabia with $1.3 billion in net buying by foreign investors," analysts from Kamco Invest noted.
With the upcoming listing of Lulu shares on the ADX next month, Abu Dhabi is expected to maintain its lead in attracting both foreign institutional and retail investors. Boursa Kuwait followed, with foreigners consistently buying during the quarter, totaling $220.4 million. Dubai, Qatar, and Bahrain exchanges recorded net buy transactions of $68.6 million, $68.3 million, and $46.3 million, respectively.
Abu Dhabi saw the most significant increase in trading activity, with the value traded rising from $16 billion in Q2-2024 to $21.4 billion in Q3-2024, resulting in a share of 12.9% versus 10.1% in Q2-2024. Meanwhile, GCC investors showed net selling on GCC exchanges during Q3-2024, with net sale trades reaching $195.1 million compared to a net buy trade of $649.5 million in Q2-2024.
Saudi Exchange led in net buying by GCC investors during Q3-2024 at $21.4 million, followed by Oman with $6.2 million. Conversely, Kuwait, Dubai, and Qatar exchanges recorded net sales by GCC investors in Q3-2024, partially offsetting the overall buying by GCC investors. In terms of monthly trends during Q3-2024, aggregate trading activity by GCC investors peaked in July-2024 and hit the lowest in August-2024.
Total GCC volume traded increased by 19.8% quarter-over-quarter to reach 83.01 billion shares in Q3-2024, up from 69.3 billion shares in Q2-2024. All GCC exchanges reported a quarter-over-quarter increase in volume during the quarter, except for Qatar and Oman.
Analysts identified regional market trends, IPOs, geopolitical issues, economic health, and crude oil prices as key factors influencing the flow of foreign money in the region. The quarter saw an uptrend in the equity market, with gains outweighing losses as two out of seven exchanges reported declines during Q3-2024. The anticipated reduction in interest rates by the US Fed during the quarter supported market performance in the region, leading local investors to become net sellers, while foreign investors stepped in as net buyers.
Source link: https://www.khaleejtimes.com
