The UAE equity markets, including the Dubai Financial Market (DFM) and the FTSE ADX Index in Abu Dhabi, experienced declines in the last month. The DFM General Index saw a 4.3 per cent drop, marking its third consecutive decline after four months of gains. The financial sector, which is the largest weighted sector in the exchange, was among the decliners, dragging the overall index into the red. Significant share price declines in banks like Commercial Bank of Dubai and Emirates Investment Bank contributed to the index decline. Additionally, the consumer staples and real estate sectors also witnessed significant declines during the month.
Despite the overall downward trend, some companies saw positive gains in their share prices. Al Mazaya Holding Company, National Industries Group, and Mashreq Bank were among the top gainers, while Agility, Al Salam Bank Sudan, and Dubai National Insurance recorded declines. Trading activity saw a moderate increase, with total volume and value of shares traded rising compared to the previous month. Notable companies like Drake & Scull International, Emaar Properties, and Emirates NBD were among the most actively traded stocks in terms of volume and value.
In Abu Dhabi, the FTSE ADX Index fell by 2.3 per cent, continuing its declining trend in 2024. The industrial sector posted the largest fall among the sectors, with companies like Alpha Dhabi and Abu Dhabi Ports leading the decline in share prices. Al Dhafra Insurance, Bank of Sharjah, and Union Insurance Company were among the top gainers, while Presight AI, National Corporation for Tourism & Hotels, and Alpha Dhabi Holding recorded declines on the stock market. Trading activity on the exchange increased, with total volume and value of shares traded seeing a significant uptick compared to the previous month.
In the wider GCC region, the MSCI GCC Index registered the biggest decline in 17 months, falling by 6.4 per cent. Saudi Arabia reported the biggest decline during the month, with the Tadawul All Share Index falling by 7.2 per cent. The decline in the region was attributed to geopolitical issues and lower crude oil prices, which exacerbated a sell-off in global emerging markets. Despite the challenges facing the equity markets, investors continue to monitor the situation closely for potential opportunities in the future.
