Dubai’s Financial Market (DFM) outperformed its Gulf Cooperation Council (GCC) peers in October, closing with a 1.9% monthly gain to reach 4,591.1 points, according to data from Kamco Invest released on Sunday. This marks the fifth consecutive month of positive performance for Dubai’s stock market, pushing its year-to-date (YTD) gain to 13.1% — the highest across GCC markets.
The DFM’s October rally was driven by significant gains in four of its eight sectors, especially real estate and consumer discretionary, according to a report from Kamco’s investment team. The real estate index alone rose 1.7%, closing at 8,458.0 points. This sector’s performance was bolstered by prominent gains in Emaar Development and Deyaar Development, which rose 6.3% and 4.0%, respectively. Additionally, the consumer discretionary sector achieved the largest monthly increase among all sectors, climbing 11.3% to 1,572.0 points, largely driven by Taaleem’s 11.3% rise.
The communications sector followed closely with a 7.0% monthly gain, spurred by a corresponding increase in the stock price of Emirates Integrated Company, the only constituent in that sector. Other notable performers in Dubai included National International Holding, which led with an exceptional gain of 117.3%, followed by Dubai Insurance and Emirates Refreshment Company with gains of 31.8% and 25.1%, respectively. Dubai Insurance’s rise came after it began issuing digital assets custodial risk insurance in collaboration with Hong Kong-based OneDegree, following an approval from the UAE Central Bank.
On the downside, Takaful Emarat Insurance experienced a steep decline of 53.6%, following a recent capital increase announcement. Emirates Investment Bank and Al Mazaya Holding also saw declines of 16.7% and 13.5%, respectively. Despite the mixed individual performances, total trading volume in Dubai fell by 9.3% to 3.3 billion shares compared to 3.6 billion in September, although the total traded value rose 7.1% to Dh7.8 billion.
Abu Dhabi’s FTSE ADX index, however, posted a 1.0% decline in October, countering a 1.5% gain from the previous month and bringing its YTD performance to -2.6%. The largest sector decline came from the utilities index, which dropped 11.2%, led by an equivalent drop in Abu Dhabi National Energy Company. In contrast, Gulf Pharmaceutical Industries topped the gainers with an 82.2% monthly increase, followed by Abu Dhabi National Co for Building Materials and Eshraq Investments, with gains of 26.6% and 15.3%, respectively. Abu Dhabi’s trading activity surged, with total trading volume jumping by 115.3% to 14.9 billion shares, and total traded value doubling to Dh60.9 billion in October.
Across the GCC, stock market performance was mixed, with four of seven markets posting gains. However, the MSCI GCC Index saw an overall 1.5% decline, ending a four-month streak of positive performance, as declines in Saudi Arabia, Abu Dhabi, and a slight dip in Qatar weighed on the region’s collective performance.
