Dubai’s Salik and Parkin Lead Strong 2024 Stock Market Gains – Century Financial

Gulf MarketsThe ADX General is rising for the second day, climbing 0.5%, or 46.77 to 9,278.65 in Abu Dhabi in early trading. International Holding Co. PJSC contributed the most to the index gain, increasing 0.7%. Abu Dhabi National Co. for Building Materials had the largest increase, rising 3.7%. The DFM General Index opened 0.3% higher, climbing 14.93 to 4,783.25, as stocks gain for the second straight day in Dubai. Emaar Properties PJSC contributed the most to the index gain, increasing 1.2%. National Central Cooling Co. PJSC had the largest increase, rising 3.3%.The Tadawul All Share Index opened slightly higher at 11,792.57 in Riyadh. Saudi National Bank contributed the most to the index gain, increasing 0.5%. MBC Group CJSC had the largest increase, rising 4.4%.
Oil steadied as the market assessed President-elect Donald Trump’s threat of tariffs on Canada, Mexico and China, and progress on a cease-fire agreement between Israel and Hezbollah.
Brent traded above $73 a barrel and West Texas Intermediate was near $69 after both benchmarks clawed back earlier losses. Trump’s announcement in posts to his Truth Social network sparked a rally in the dollar, weighing on commodities priced in the currency.Oil slumped 2.9% on Monday, its biggest drop in almost a month, after Israel said it’s potentially days away from a deal with Hezbollah, which could diminish the risk to Middle Eastern crude supply and ships traversing the region. Still, it remains unclear if the Iran-backed group will accept a truce.GoldYesterday, gold prices tumbled over 3%, putting the precious metal on track for its worst day since June 07. This was partly due to reports of Israel nearing a ceasefire with Lebanon, and partly due to Trump’s nomination of Scott Bessent for the role of Treasury Secretary. Bessent’s nomination took away some of the risk premium associated with Trump’s protectionist policies. However, Trump’s latest remarks have heightened uncertainty.

President-elect Donald Trump said the U.S. is contemplating additional tariffs on imports from China, Mexico, and Canada. He proposes extra 10% tariffs on Chinese imports, and 25% on all imports from Mexico and Canada. This triggered an uptick in the U.S. Dollar as Trump’s “America First” policies reignited fears about their potential inflationary impact. This is exerting pressure on gold.

Gold is holding steady at around $2,622 on Tuesday, with support at $2,573 and resistance at $2,666 where the 21-SMA coincides with the 50-SMA on the day chart. Despite near-term headwinds, gold has risen oven 25% year-to-date, supported by central bank purchases, rate-cut optimism, and haven demand. This week, we can expect minutes of the Fed’s November FOMC meeting, as well as reports pertaining to consumer confidence and personal consumption expenditure data. These data points could offer clues about the Fed’s move at the upcoming December FOMC meeting.

Gold prices in the UAE are as follows:
24 Carat – AED 318.00
22 Carat – AED 294.50
21 Carat – AED 285.00
18 Carat – AED 244.25

• Parkin & Salik Leading the Overall 2024 Gains – Focus on Dubai’s Rising Residency Population

Parkin Co PJSC | Last Price: AED 4.28 | YTD Gains: 60% | Listing Exchange: DFM
Salik Co PJSC | Last Price: AED 5.80 | YTD Gains: 85% | Listing Exchange: DFM

Source: Dubai Population Clock, Dubai RTA, Individual Company Earnings, Bloomberg

The IPO listing wave in the UAE has been strongly supported by the stellar rise in Dubai’s resident population, which has increased by nearly 260,000 since January 2023. To put things into perspective, this rise is almost 75% of the entire 4-year population growth of 358,000 taken from 2018 – 2022. This phenomenal rise in population growth over the last 24 months is also creating positive dynamics for the local stock market sentiment. Perhaps the best visible synergies are observed in the top government auto and utilities-related stocks – Parkin & Salik.

Price Appreciation in the Stocks Supported by Earnings & Core Economy Trends

Parkin is up by nearly 60 % since its March listing this year, whereas Salik is up by almost 85 % in this year’s trade. The latter is, in fact, the top-performing stock for this year in the DFM index. Earnings-wise for Q3, Salik delivered an average beat across all the consensus, with utility operators’ revenue-generating trips showing strong guidance. Meanwhile, for 2025, Salik has given guidance for +25-26% YoY revenue growth, primarily in line with market forecasts. The number of vehicles registered with Salik continued to show a near 10 % growth, with the EBITDA margin at 68%.

Similarly, for Parkin, the Q3 reports showed a 25 % y-o-y revenue growth with a stellar 40 % rise in EBITDA. The increase in Dubai’s car population is visible in Parkin’s operational numbers, including public parking revenues and growth from the developer’s parking side. The latter witnessed a 42 % growth due to the company’s tie-up with new developers and the phased introduction of spaces in Dubai’s privately developed areas.

Focus on Dubai’s AED 3.7 billion Road Expansion Plan 2025 – 2029: Incrementally Positive for Both Stocks

A few days back, Dubai’s RTA approved a 5-year internal roads infrastructure development plan worth AED 3.7bn. The plan will see 634km of new roads built across 12 districts during 2025 -2029. In line with Dubai’s Master Urban Plan Strategy, the plan covers areas with urbanization rates ranging from 30-80% and will be executed in stages over the coming years. It should be noted that these plans correspond to almost 50 % of the 2025 ( e )  government budget expenditures that are being earmarked for various infrastructure projects, including roads, bridges, and metro expansion. These announcements are incredibly favorable for Salik as the increase in the road network will only mean the likely addition of new toll gates. It should be seen with the rise in residential projects across new areas like Dubai’s South District & Jumeirah. In the current wave of new home buying, there is a popular trend of existing families shifting from rental properties to buying their apartments & villas across new Dubai locations. The likely addition of new cars on the road and growth in the driving population is already seen with the current traffic rates.

Last Updated on 2 months by News Desk 1