Most Gulf markets fall as geopolitical tensions persist; Dubai bucks the trend with gains.
PC: MarketScreener
Stock markets across the Gulf mostly saw declines during early trade on Thursday, as regional geopolitical tensions continued to weigh on investor sentiment. However, Dubai’s main index stood out, managing to post gains.
Dubai Index Gains Led by Emaar and Dubai Taxi Company
The Dubai Financial Market General Index (DFMGI) rose 0.3% in early trading. Contributing to the rise was a 1.1% increase in the share price of Emaar Properties, one of Dubai’s leading blue-chip developers. The rise in Emaar’s stock helped offset the broader regional decline, with the market showing resilience despite external pressures.
Another standout performer in Dubai was the Dubai Taxi Company (DTC), which saw its stock climb 2.9%, further supporting the overall rise of the index. The gains in Dubai came in contrast to other Gulf markets, where geopolitical factors have created a more cautious trading environment.
Abu Dhabi Market Sees Decline
While Dubai showed positive movement, Abu Dhabi’s main index (FTFADGI) slipped by 0.1%. This decline was primarily driven by a 0.4% drop in shares of the International Holding Company (IHC), a major player in the region’s market.
IHC’s dip followed the company’s announcement that its subsidiary, International Tech Group, had acquired an additional 46% stake in Emircon, a transaction valued at 292 million dirhams (around $79.51 million). Despite this acquisition, IHC’s stock failed to gain traction during the trading session.
Abu Dhabi Commercial Bank Shines with Profit Growth
Despite the overall market decline in Abu Dhabi, Abu Dhabi Commercial Bank (ADCB) recorded a significant rise, with its stock climbing 2.2%. This surge followed the bank’s announcement of its third-quarter profit, which exceeded expectations with a 23% increase. The bank’s strong financial performance helped temper the overall decline in the Abu Dhabi market.
In summary, while regional tensions continue to impact investor confidence across the Gulf markets, Dubai’s index showed resilience with notable gains in key sectors. Meanwhile, the broader regional markets, including Abu Dhabi, struggled under the weight of geopolitical uncertainties.
