Dubai’s DFM leads GCC markets with strong weekly rise

Crude oil prices and earnings reports to boost GCC market sentiments
GCC markets
Mixed results in GCC markets with Dubai and Abu Dhabi gains

GCC markets witnessed mixed results last week. According to a new analysis by investor relations consulting firm Iridium Advisors, Dubai’s DFM (+2.4%) saw its most substantial weekly rise since September, spurred by stronger business conditions in the Emirate. Abu Dhabi (+1.7%) benefited from IHC’s gains, while Oman (+1.2%) partially recovered some of its previous week’s losses. Saudi Arabia (+0.5%) and Kuwait (+0.3%) inched higher due to sustained crude oil price increases. Conversely, Bahrain (-0.2%) persisted in its decline, and Qatar (-2.4%) suffered from banking sector weakness. US indices – Dow Jones (+1.2%), S&P 500 (+0.8%), and Nasdaq Composite (+0.3%) – advanced, thanks to moderate inflation data and reduced interest rate concerns. European markets showed similar trends, with the CAC40 (+2.7%) outshining STOXX600 (+1.7%) and FTSE100 (+1.7%), and DAX (+1.3%).

Read more: Saudi’s market leads GCC region with 3% growth: Report

The week ahead


Weakening US inflation, which slightly allayed interest rate concerns, and ongoing crude oil price increases supported by the IEA’s prediction of record-high crude oil demand in 2023 due to Chinese consumption recovery, are poised to buoy GCC market sentiments. Earnings will also serve as a significant catalyst ahead of the Eid holidays. This week, companies including ADCB, CBQK, DIB, Easy Lease, MARK, QEWC, UAB, and VFQS are slated to announce their 1Q 2023 financial results and host earnings calls. Omani markets may experience some volatility with numerous firms submitting preliminary earnings over the weekend to meet the mid-month reporting deadline, the report observed.

Global markets


In the US, investors will scrutinize PMI figures to determine if manufacturing activity contracts as the service sector softens. The Fed’s Beige Book will also be closely watched, given its previous emphasis on a robust economy. In the EU, investors will await central bank speeches, particularly remarks from the ECB’s President. In the UK, the study highlighted that jobs and inflation reports will influence BOE’s future tightening measures. Mixed job reports are anticipated, and inflation is projected to ease to 9.8%.

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