In an exciting day for the MENA stock markets, the Abu Dhabi Securities Exchange (ADX) managed to eke out a gain of 0.197%, while the Dubai Financial Market (DFM) took a small dip, falling by 0.915%. Despite this divergence, the broader regional markets exhibited intriguing movements, particularly in banking stocks, which seemed to be the standout performers.
The ADX’s modest rise reflects an optimistic market sentiment in Abu Dhabi, with investors favoring sectors like banking, where stocks such as Abu Dhabi Commercial Bank (ADCB) showed significant gains. Notably, Rapco Investment and National Company for Tourism and Hotels (NCTH) also saw gains, driven by strong corporate performances and positive news surrounding major investments. Alpha Dhabi’s increased stake in NCTH was a key driver in pushing these stocks higher.
However, across the water in Dubai, the DFM experienced a mild pullback, despite notable movements in the banking sector. Dubai Islamic Bank’s (+2.15%) and Emirates Islamic Bank’s (+14.85%) rises provided some positive momentum, but they weren’t enough to offset the sharp losses in stocks like Emirates NBD, which dropped 9.29%. While the DFM struggled on the day, there were still some highlights in the market, including good earnings reports and positive investor sentiment in select sectors.
Meanwhile, beyond the UAE, other Gulf markets exhibited notable movements. Saudi Arabia’s stock market showed modest gains, driven by a surge in Al Rajhi Bank, following its impressive annual profits. Similarly, Saudi Telecom gained 1% after securing a major telecommunications infrastructure contract. Over in Qatar, the market rose slightly by 0.1%, while Egypt’s blue-chip index saw a more substantial gain of 0.8%.
This day’s market action highlights the continued volatility in the region, driven by a combination of regional and global economic factors. Investors are clearly focusing on select stocks, particularly in the banking and telecommunications sectors, as they try to navigate through the ups and downs of the financial landscape in MENA.
