Dubai’s financial markets have shown encouraging growth as indices maintain an upward trajectory for the second consecutive day. The Dubai Financial Market (DFM) index witnessed a rise of 0.704%, while the Abu Dhabi Securities Market (ADSM) index increased by 0.503%. Local stock exchanges showcased significant activity, exceeding 14 billion dirhams in market gains during the weekend session on Friday, primarily supported by robust performances from leading stocks.
Market Capitalization Growth
The total market capitalization of shares across both the DFM and ADSM rose from roughly 3.572 trillion dirhams at Thursday’s close to approximately 3.586 trillion dirhams by the end of Friday’s trading session. This growth is reflected in the distributions where the Abu Dhabi Exchange accounted for around AED 2.607 trillion, while the Dubai Exchange represented AED 979.28 billion. Such figures indicate a healthy market environment, where investor confidence appears to be increasingly robust.
Strong Liquidity in Local Stocks
Friday’s trading session attracted liquidity exceeding AED 1.46 billion, with AED 497.2 million flowing into the Dubai market and AED 972.61 million into the Abu Dhabi market. This activity involved the exchange of 902.39 million shares through approximately 36,345 trades. The DFM closed the session up by 0.704%, equating to a rise of 41.12 points, reaching a total of 5,884.63 points. This surge was driven by a near-universal increase across various sectors, particularly real estate, industry, and banking, which collectively bolstered the market’s capitalization.
Sector Performance Highlights
The overall market performance was positively influenced by a nearly ubiquitous rise in stock values across sectors. The real estate sector led the charge with a 2.17% increase, followed closely by the industrial sector at 0.88%. Banking stocks also saw an uptick of 0.17%, while communications and basic consumer goods rose by 1.26% and 1.92%, respectively. Such widespread gains in multiple sectors demonstrate solid foundational growth within the market.
During this trading period, foreign (non-Arab) investors shifted towards purchasing stocks, resulting in a net investment increase of approximately AED 39.44 million. They made purchases totaling AED 153.85 million, in contrast to AED 114.41 million in sales. Collectively, listed stocks in the Dubai market saw liquidity surpassing AED 497.2 million.
Key Players in the Dubai Financial Market
Notably, six companies listed on the Dubai Financial Market contributed over 67.33% of the market’s total liquidity on Friday. The trading value of these select shares was approximately AED 334.75 million, a significant proportion of the AED 497.2 million liquidity for the day. Emaar Properties took the lead in trading activity, generating liquidity of AED 140.13 million, which reflected a 2.2% increase in share price to reach AED 11. Shuaa Capital followed, with trades totaling AED 53.78 million and a notable 14.89% rise to AED 0.27.
Abu Dhabi Securities Market Performance
The Abu Dhabi Securities Market also demonstrated positive momentum, closing Friday’s session up by 0.503% or 49.97 points, ultimately landing at 9,977.36 points. Market capitalization for listed stocks increased to about AED 2.607 trillion, marking a significant upward progression from AED 2.597 trillion the previous trading day, which equates to gains of roughly AED 9.7 billion. This market performance was accompanied by substantial liquidity, exceeding AED 972.61 million across 371.07 million shares traded, executed through 22,805 transactions.
In summary, the financial momentum in Dubai and Abu Dhabi showcases increasing investor confidence and strong sectoral performances, positioning both markets for sustained growth moving forward.