Tech Stocks Deemed Stable Despite 64% Drop in Value in 2022; Meta Named Most-Traded Stock Among GCC Residents
- Technology stocks will continue to be a popular investment in 2023, according to Saxo Bank
DUBAI, UAE 24 January 2023 – Saxo Bank, the online trading and investment specialist, has revealed US tech firms were the most traded among its UAE-based clients last year. Meta Platforms led the list of Saxo’s most-traded stocks for the GCC in 2022, ahead of Apple, Amazon.com, Tesla, and Microsoft.
Last year was expected to demonstrate a world recovering from the COVID-19 pandemic and heading toward a new normal. Yet while the effects of the pandemic did ease, 2022 brought surprises, starting with Russia’s invasion of Ukraine in February. The attacks shook the market, impacting both energy and food stocks and prompting a surge of inflation around the world.
Yet technology stocks maintained their status as the most popular among retail investors. Peter Garnry, Head of Equity Strategy at Saxo Bank, said: “The best long-term performance has been found in the technology sector. In addition, many of the large technology companies are household names among consumers, making them more recognisable than some industrial companies.”
Last year was a challenge for tech stocks as excessive equity valuations were destroyed due to rapidly increasing interest rates, causing significant losses. Meta in particular took an awful hit, down 64 per cent in 2022. Garnry added: “Many retail investors were still positive on the technology sector during 2022, with retail investors being net buyers of these stocks despite the declines. We expect technology stocks to remain popular this year – especially if the Fed scales back its tight monetary policy at some point.”
Similar to the most traded stocks in the GCC, Saxo Bank’s most traded stocks globally for 2022 included Tesla, Apple, and – despite the hit it took – Meta Inc.
“There has always been a noticeable comparison within the trade of tech stocks versus other assets”, added Damian Hitchen, CEO of Saxo Bank MENA. “There is no surprise there as growth in technology is constant and consistent. Companies in all fields are always looking to increase their productivity with the help of technology.”
Regardless of the microeconomic headwinds caused by the war in Ukraine, Covid-19 after-effects, and rising interest rates, the general population continue to find safety in tech shares.
About Saxo Bank Middle East
Founded in 1992, Saxo Bank was one of the first financial institutions to develop an online trading platform that provided private investors with the same tools and market access as professional traders, large institutions, and fund managers. It was also the first Scandinavian bank to establish a presence in the GCC when it launched a regional office in the Dubai International Financial Centre in May 2009. It opened an office in Abu Dhabi in 2014 and quicky saw its MENA region revenues triple.
Headquartered in Copenhagen, Saxo Bank combines an agile fintech mindset with close to 30 years of experience and a track record in global capital markets to deliver a state-of-the-art experience to clients. The Saxo Bank Group holds four banking licenses and is well regulated globally, including by the Central Bank of the UAE. Saxo Bank’s client assets worldwide total more than €75 billion and the company employs more than 2,000 financial and technology professionals in financial centres around the world including London, Singapore, Amsterdam, Shanghai, Hong Kong, Paris, Zurich, Tokyo, as well as Dubai and Abu Dhabi.
For more information, please visit: http://www.home.saxo/ME