Market Update: Key Developments in the UAE Stock Market
1. Weekly Performance Recap:
The Abu Dhabi Securities Exchange (ADX) experienced a slight decline of 0.4% last week, as investors exercised caution amidst heightened regional tension. However, some stocks, including Burjeel, Palm Sports, CBI, Sharjah Cement, and ESG, demonstrated strong performance.
2. Financial Highlights:
- Abu Dhabi Islamic Bank (ADIB) reported an impressive year-over-year earnings growth of approximately 40% in the third quarter of 2023.
- Abu Dhabi Commercial Bank (ADCB) also posted solid growth, with a growth rate of 15% in the same period.
3. Market Movements and Analysis:
- Alpha Dhabi expanded its energy sector portfolio by acquiring a 51% stake in NTS Amega Global, focusing on oil field services.
- Shareholders of Abu Dhabi National Hotels (ADNH) approved a stock split at a ratio of 1:10.
- EAND reached a new 52-week low, presenting an attractive investment opportunity with a projected PE ratio of 15x and a dividend yield of 4.5% for 2023.
4. Technical Analysis of Selected Stocks:
- WAHA CAPITAL: The stock is showing signs of upward movement, with a resistance level at AED1.68. If surpassed, it may target AED1.80 in the short term.
- Burjeel Holdings: Showing resilience above the AED2.48 support level, with a potential target price of AED3.16 in the short to medium term.
- Aldar Properties: Demonstrating stability above the AED4.60 support level, aiming to target AED5.26 and potentially reaching AED5.60 in the short term.
5. Corporate Highlights:
- First Abu Dhabi Bank (FAB) reported a remarkable 16% EPS beat in the second quarter, driven by gains from investments and successful credit recoveries.
- Multiply Group witnessed substantial revenue growth of 23.8% year-over-year and achieved an impressive surge in net profit.
- Palms Sports showcased remarkable growth, with revenue surging by 57% in Q3 2023, contributing to a significant year-over-year growth in gross profit.
6. Industry News:
- ADNOC Gas announced a multi-year agreement for LNG supply, strengthening the relationship between the UAE and Japan, with an estimated value ranging from USD 500 million to USD 700 million.
These developments reflect the dynamic nature of the UAE stock market and highlight various opportunities for investors across different sectors.
