UAE Stocks Gain $2.3 Billion in Market Value, Boosting Investor Confidence

UAE stock markets posted strong gains yesterday as banking stocks led a broad rally, adding 8.45 billion dirhams to total market value. Abu Dhabi Securities Exchange gained 3.9 billion dirhams while Dubai Financial Market added 4.57 billion dirhams, with both indices closing in positive territory on trading volume of 1.66 billion dirhams.

The timing looks strategic. Analysts are watching for companies to report solid profit growth for the first nine months of 2024 as third-quarter earnings season begins. Yesterday's trading showed clear signs that investors are building positions in stocks expected to deliver strong results.

Abu Dhabi Market Shows Strength

Abu Dhabi's main index climbed 22.62 points to close at 10,120.73, up 0.22%. The gains came from 42 companies rising against 33 declining, with 48 stocks unchanged. Trading reached 1.256 billion dirhams across 303.88 million shares in 18,952 transactions.

ADNOC Drilling dominated trading by value at 199.52 million dirhams, followed by Sharjah Islamic Bank at 152.33 million dirhams and ADNOC Gas at 128.98 million dirhams. Banking stocks performed particularly well - First Abu Dhabi Bank rose 0.6% to 16.4 dirhams, Commercial Bank of Abu Dhabi jumped 2.3% to 15.18 dirhams, and Abu Dhabi Islamic Bank gained 0.3% to 22.18 dirhams.

Foreign investors showed confidence, buying 466.67 million dirhams worth of stocks while selling 366.45 million dirhams, creating a net inflow of 113.53 million dirhams. This foreign buying pressure often signals institutional confidence in market direction.

Dubai Market Joins the Rally

Dubai Financial Market's general index rose 21 points to 5,975.8, up 0.35%. The market saw 19 companies advance against 24 declining, with total trading of 404.59 million dirhams on 118.15 million shares through 11,474 transactions.

Emirates NBD led banking gains with a 2.87% jump to 2.95 dirhams. Dubai Taxi rose 2.61% to 2.75 dirhams, while Talabat gained 2.51% to close at 0.979 dirhams and topped the volume charts.

Foreign activity in Dubai showed a different pattern, with investors selling a net 6.98 million dirhams as purchases of 194.93 million dirhams fell short of sales totaling 201.91 million dirhams.

The market momentum reflects growing optimism about corporate earnings and regional economic stability. With oil prices remaining supportive and banking sector fundamentals strong, investors are positioning for what many expect to be a solid earnings season. The heavy institutional selling in Abu Dhabi, exceeding one billion dirhams, suggests some profit-taking but hasn't dampened overall market sentiment.