Strong Performance of Dubai’s Benchmark Index
Dubai’s benchmark index outperformed other GCC markets in October, gaining 1.9% to close at 4,591.1 points. Year-to-date, the Dubai Financial Market (DFM) General Index has surged by 13.1%, the highest in the GCC.
Consistent Gains in the DFM Index
The DFM Index has shown consistent positive performance for five consecutive months, highlighting robust investor confidence. According to Kamco Invest, this upward trend has propelled the DFM’s year-to-date gains to an impressive 13.1%.
Sector Performance Insights
Among the eight sectors in the DFM, four recorded growth in October. Notably, the real estate sector led the charge with a 1.7% increase, driven primarily by significant gains in Emaar Development (6.3%) and Deyaar Development (4.0%). The consumer discretionary index stood out with the largest monthly gain of 11.3%, largely thanks to Taaleem, which rose nearly 11.3%. The communications sector followed closely, increasing by 7.0%.
Top Gainers and Decliners
National International Holding topped the performance chart with an extraordinary 117.3% gain. Other notable performers included Dubai Insurance (31.8%) and Emirates Refreshment Company (25.1%). The surge in Dubai Insurance’s shares came after the company announced a partnership with Hong Kong-based OneDegree to offer digital asset custodial risk insurance, following Central Bank approval. On the flip side, Takaful Emarat Insurance faced the steepest decline at 53.6%, amid news of a significant share capital increase.
Trading Activity Highlights
Trading activity in October showed mixed results. Total monthly trading volume decreased by 9.3% to 3.3 billion shares, while the total value traded increased by 7.1% to Dh7.8 billion. Emaar Properties led the value traded chart, reaching Dh2.0 billion, followed by Emirates NBD and Salik.
Abu Dhabi Market Performance
In contrast to Dubai, the FTSE ADX index in Abu Dhabi fell by 1.0% in October, bringing its year-to-date performance to -2.6%. The utilities sector suffered the largest decline, dropping 11.2%, primarily due to a decrease in Abu Dhabi National Energy Company’s shares.
Increased Trading Volume in Abu Dhabi
Despite the overall decline, Abu Dhabi saw a remarkable increase in trading activity. The total volume of shares traded jumped by 115.3% to 14.9 billion shares, and the total value traded more than doubled to Dh60.9 billion.
Mixed Results in the Wider GCC
The wider GCC equity markets experienced mixed results in October. The MSCI GCC Index declined by 1.5%, breaking a four-month streak of gains. This downturn was largely influenced by declines in Saudi Arabia and Abu Dhabi, alongside a marginal drop in Qatar.
Conclusion
Overall, Dubai’s strong performance contrasts with the mixed results seen across the wider GCC. Investors remain optimistic about the Dubai market’s growth trajectory, particularly in key sectors like real estate and consumer discretionary.
