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UAE stock markets resilient in January

(Supplied)
2 Feb 2025 19:46

A. SREENIVASA REDDY (ABU DHABI) 

The stock markets across the Gulf Cooperation Council (GCC) started the year 2025 on a positive note, reflecting a broader global equity rally, the Kamco Invest monthly report on stock markets said.  

While some markets posted significant gains, others experienced marginal increases or declines. The UAE markets, particularly Abu Dhabi and Dubai, demonstrated resilience with positive growth, while Kuwait and Saudi Arabia showed robust performance, the report said. 

The Abu Dhabi Securities Exchange (ADX) recorded a gain of 1.8% in January 2025, closing the month at 9,586.1 points. The market witnessed broad-based growth, with seven out of 10 sectors reporting gains, the Kamco Invest report said.

The health care sector led the charge with a 6.2% increase, largely driven by a strong 18.2% rise in shares of Gulf Pharmaceutical Companies and a 5.7% gain in PureHealth shares. Gulf Pharmaceutical Industries (Julphar) also announced a significant investment plan of Dh293 million to establish a pharmaceutical and biotech facility in Saudi Arabia, further bolstering investor confidence.

The telecom sector followed closely, rising by 5.3%, thanks to gains in major players such as Etisalat and Yahsat. However, the utilities sector experienced the steepest decline, shedding 10.6%, primarily due to an 11.1% drop in shares of Abu Dhabi National Energy Company (TAQA).

In terms of monthly stock performance, Fujairah Cement topped the monthly gainers chart for January-2025 with its shares gaining 33.3% followed by Hily Holding and Abu Dhabi National Holding for Building Materials (BILDCO) with gains of 25.4% and 18.6%, respectively. On the decliner’s side, Al Wathba National Industries led the way registering a 17.9% fall in its share price during January-2025 followed by ARAM Group and Abu Dhabi National Energy Company which saw share price declines of 12.4% and 11.1%, respectively.

Shares of BILDCO gained after the company disclosed that they are studying and evaluating the possibility of entering into a strategic partnership with another company in the UAE.

In terms of trading activity, the ADX saw an increase in share trading volume by 21.6% compared to December 2024, reaching 5.6 billion shares. However, the total value of traded shares declined by 7.4% to Dh20.5 billion. Among the most active stocks, International Holding Company (IHC) led in trading value, followed by Alpha Dhabi Holding and ADNOC Drilling.

The Dubai Financial Market (DFM) extended its gains for the eighth consecutive month, albeit with a modest increase of 0.4% in January 2025, closing at 5,180.4 points. Sectoral performance was mixed, with five out of eight indices recording gains.

The financials sector rose by 3.4%, supported by positive earnings reports from key players, including Emirates Islamic Bank, which posted a 32.5% increase in net profit. The real estate sector also showed strength, rising by 1.8%, with Union Properties leading the gains with a 4.6% rise. Meanwhile, the Communications Services sector was the best performer, registering a 5.2% increase.

On the downside, the utilities index suffered the most, declining by 8.3%, followed by the industrial sector, which fell by 2.3%. Trading activity in Dubai was slightly lower compared to December 2024, with the total volume of traded shares declining by 15.7% to 5.2 billion shares, and the total traded value slipping by 2.6% to Dh13.8 billion.

Among individual stocks, Emaar Properties dominated the trading charts with Dh4.2 billion worth of shares exchanged, followed by Emaar Development and Emirates NBD.

According to the monthly stock performance from Bloomberg, Al Salam Bank Sudan topped the monthly gainers table with 53.7% jump in share price followed by Aramex and Emirates Islamic Bank with gains of 28.6% and 14.9%, respectively. Aramex has recently provided an update regarding the acquisition talks by Q Logistics Holding LLC, a subsidiary of Abu Dhabi’s sovereign wealth fund. 

The best-performing market in January 2025 was Kuwait, with the Premier Market Index surging by 5.9% to cross the 8,000-point mark. Gains were broad-based, led by the energy and real estate sectors.

In Saudi Arabia, the Tadawul All Share Index (TASI) rose by 3.1%, closing at 12,415.5 points. The Financial and Consumer Discretionary sectors drove the gains.

The Qatar Stock Exchange Index inched up by 0.9% to close at 10,666.7 points, supported by Telecom and Industrials.

In Bahrain,  the All Share Index dropped by 5.4% due to a sharp decline in Aluminum Bahrain’s stock (-18.5%).

In Oman: The MSX 30 Index declined slightly by 0.7%, with losses in the Services sector offsetting gains in Financials and Industrials.

Looking ahead, Kamco Invest report said the UAE stock markets are expected to remain stable, supported by a robust banking sector, increasing foreign investment, and government-backed infrastructure projects.

Lower interest rates are likely to sustain lending growth, while Dubai’s real estate market could continue to attract investors. Abu Dhabi’s diversification into sectors such as healthcare and telecoms will further drive market growth, the report said. 

The broader GCC markets will be influenced by global economic conditions, energy prices, and geopolitical developments. Saudi Arabia and Kuwait are expected to maintain their upward trajectory, while Qatar and Bahrain may face some volatility.

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