- DFM General IndexÂ
The Dubai benchmark, the DFM General Index, recorded a modest 3.97% gain. Despite the global volatility, UAE markets remained resilient. The volatility is due to nomination of Kevin Warsh as a Fed governor, who is viewed as more hawkish, triggering a sell-off in US technology stocks and weighing on global markets. This highlights the diversification benefits of holding UAE equities in a portfolio. The DFM General Index’s forward P/E stands at 11.51x, making it attractive for both domestic and foreign investors.
Top gainers for the week include National Cement (+9.88%), Emirates NBD (+9.84%), Emaar Development (+7.23%), Drake & Scull International  (+6.86%), Tecom Group (+6.07%), and Ajman Bank (+6.04%). By comparison, Mashreqbank, Islamic Arab Insurance, and Emirates Reem Investments were the top laggards, falling by 6.15%, 2.72%, and 1.56%, respectively.
Looking at the sector-wise performance, all sectors ended the week in positive territory. Real Estate was the biggest winner, posting a 6.69% gain. This was followed by Materials (+5.56%), Financials (+3.70%), Industrials (+3.65%), Utilities (+2.60%), Communication Services (+1.94%), Consumer Discretionary (+0.98%) and Consumer Staples (+0.92%)
- ADX General IndexÂ
The ADX General Index also delivered a weekly gain of 2.74%, at 10,563.11. The index is just shy of its all-time high set in 2022 at 10,683. This week, the FDGI were in the green for five consecutive days despite the global volatility.
Real Estate emerged as the best-performing sector this week, yielding a return of over 7%. Telecommunications was the second-best performer, gaining over 4.66% this week. Industrials and Consumer Discretionary advanced 4.05% and 3.20%, respectively. On the flip side, sectors like Consumer Staples (-0.2%), Utilities(-0.29%) and Technology (-0.44%) underperformed.
- Upcoming EarningsÂ
In Dubai, companies such as Dubai Electricity & Water, Emaar Properties, Dubai Islamic Bank, Salik, Dubai Investments, Dubai Taxi and ALEC Holdings. Meanwhile, noteworthy companies reporting earnings in Abu Dhabi include ADNOC Gas, Aldar Properties, United Arab Bank and ADNOC Drilling.
- Looking AheadÂ
The most anticipated earnings release is from Emaar Properties, with an estimated EPS of AED 0.49. The estimate for Q3 was 0.41, but it gave a surprise 20.18%. The EPS in Q3 was AED 0.49. Moreover, investors are anticipating a hike in dividend to AED 1.17/share from AED 1.00/share. Emaar remains closely aligned with Dubai’s real estate growth story, supported by a well-diversified portfolio that generates stable and growing cash flows. Its strong financial performance continues to support the investment case, while significant pre-sales before project completion have led to a large backlog of future revenue.
