UAE market performance for the week and expectations (as of 16th October)
UAE markets ended the week on a firmer footing, with the DFM General Index up 0.84% and the FTSE ADX General Index snapping a three-week losing streak. Investors looked past the escalation in Houthi attacks, as the Iran-aligned group has stepped up strikes on Saudi cities and energy infrastructure. Sentiment was supported by President Donald Trump’s pledge that the US will not launch an attack on Iran before the November midterm elections, citing productive talks about ending the six-month-old war. This eased the immediate geopolitical risk premium. However, Trump also said the blockade will remain in full force, and both indices are still trading below key moving averages. Next week’s bank earnings will be the key test.
FTSE ADX General Index (FADGI):
The FTSE ADX General Index edged up 0.13% for the week ending 16th October 2026, gaining 12.70 points and closing at AED 9,808. After three consecutive weeks in the red, the index posted a green weekly close.
By sector, Consumer Staples led with a 1.64% gain, followed by Telecommunications (+1.43%) and Financials (+0.32%). The laggards were Basic Materials, Technology and Health Care, down 5.07%, 4.33% and 3.06%, respectively.
Among individual stocks, Al Buhaira National Insurance led the gainers, rising around 14%. Among the heavyweights, First Abu Dhabi Bank and Abu Dhabi Islamic Bank gained around 4%. On the losing side, Fertiglobe and Gulf Cement declined around 5% and 6%, respectively, weighing on Basic Materials.
The index rebounded from its support at 9,745 this week and is trading close to the support. Immediate resistance lies at 9,960, as it coincides with the 200-day SMA. The index is trading below its 9-, 21-, 50-, 100- and 200-day SMAs. The RSI dropped to 30 on 12th October before rebounding to 36 today.
Bank earnings will also be in focus in Abu Dhabi next week, with First Abu Dhabi Bank, Abu Dhabi Islamic Bank and National Bank of Ras Al Khaimah scheduled to report. As the UAE’s largest lenders, its results are highly watched as a barometer for regional credit strength and macroeconomic momentum in the GCC.
DFMGI (DFM General Index):
The DFM General Index rose 0.84% for the week ending 16th October 2026, closing at AED 5,867.31, up 48.84 points. Breadth was evenly split, with 20 stocks advancing and 21 declining.
The gain was highly concentrated. Emirates NBD rose 5.55%. Air Arabia (+5.44%), Dubai Electricity & Water Authority (+3.11%) and Emirates Integrated Telecommunications (+2.35%) were the other key contributors. DEWA recovered after its 3.32% decline two weeks earlier. On the downside, Mashreqbank (-5.33%) was the biggest drag, taking 11.07 points off the index. It was followed by Etihad Energy Holding (-4.35%) and Dubai Investments (-1.07%). By percentage move, SHUAA Capital (-7.69%) and Takaful Emarat Insurance (-6.01%) were the weakest performers.
Consumer Discretionary was the best-performing sector, up 4.17%, supported by gains in Air Arabia and Talabat Holding (+4.74%). Communication Services (+2.35%) and Financials (+1.08%) followed. Financials gained despite Mashreqbank’s decline, as the advance in Emirates NBD more than offset it. Real Estate (+0.75%) and Utilities (+0.74%) posted modest gains. Consumer Staples was the worst-performing sector, down 1.21%, followed by Industrials (-0.36%).
Technically, the index rebounded from support at 5,789; however, it was unable to break above resistance at 5,896. The index has been unable to break above this resistance since 5th August. The index is trading below its 9-, 21-, 50-, and 100-day SMAs as the Middle East conflict takes a toll. The RSI bounced back from 41 to 46 at today’s close. Next week’s earnings will set the index’s tone.
Bank earnings will be in focus next week. Emirates NBD, Dubai Islamic, Commercial Bank of Dubai and Ajman Bank. Emirates NBD’s results will be closely watched, as the stock drove about two-thirds of the index’s gain this week.
