The Dubai Financial Market (DFM) General Index recorded double-digit gains of 10.9 percent, the biggest in the Gulf Cooperation Council (GCC) region, since the beginning of 2024, according to a report.
The report, published by Kamco Invest, said that the DFM General Index recorded a 4.1 percent increase in September, its fourth consecutive monthly gain and the largest monthly gain among the GCC markets in September 2024.
The overall index growth was broad-based, although growth in the top weighted indices such as the financial index (+3.6 percent) and real estate (+3.1 percent) drove the overall index performance in September-2024.
Trading activity
In terms of trading activity, total monthly volume in September dropped by 11.9 percent to reach 3.6 billion shares vs. 4.1 billion shares during the preceding month, while monthly value traded declined by 8.6 percent to AED7.3 billion vs. AED8 billion during August 2024.
Shares of Emaar Properties topped the value traded chart with total trades worth AED1.7 billion followed by Emirates NBD and Dubai Islamic Bank at AED778 million and AED529.8 million, respectively. In terms of monthly volume, Drake & Scull International topped with one billion traded shares, followed by GFH and Union Properties at 306.8 million and 293.7 million shares, respectively.
Meanwhile, the FTSE ADX index recorded a 1.5 percent increase in September 2024, bouncing back from its 0.6 percent dip in August 2024. The monthly increase reduced the indices’ YTD-2024 decline to -1.6 percent.
Here’s a look at five UAE stocks that have gained the most since January 1.
Gulf Pharmaceutical Industries
Gulf Pharmaceutical Industries engages in the manufacture and sale of medicines, injections, and consumer healthcare products. The company’s shares have gone up 89.86 percent YTD, driven by a robust H1 performance, especially a strong second quarter.
“The company’s sales for H1 2024 reached AED883.1 million, representing a growth of 2.8 percent. In Q2, sales grew by 9.5 percent compared to the previous quarter. Revenue through pharmacy retail and wholesale operations, Planet Pharmacies, increased 8.4 percent compared to last year. During H1, the company reduced loss to profit and increased EBITDA, demonstrating the company’s efficiency improvement initiatives and future growth prospects,” said Vijay Valecha, chief investment officer, Century Financial.
Agthia Group
Agthia Group PJSC engages in the manufacturing and distribution of food and beverage products. The company’s shares have rallied 63.5 percent this year due to solid results and significant milestones. The group recently expanded into Saudi Arabia to tap into vast opportunities in the largest market in the GCC, with its AED90 million manufacturing facility.
“Agthia delivered a strong performance during H1 2024 and is on track to meet its full-year 2024 guidance. The company exhibited profitable growth across all its segments, with net profit up 31.8 percent YoY and net revenue up by 14.7 percent. The company’s board of directors have approved a 25 percent YoY increase in the interim dividend, which shows the company’s commitment to creating shareholder value. The company has also agreed to acquire a 75 percent stake in Ismailia Investments, which owns the Atyab brand. This acquisition could improve the company’s standing in the processed meat industry,” Valecha said.
Mashreq Bank
Mashreq Bank PSC has rallied 62.5 percent YTD. The rise is due to its strong financial performance in H1 and the bank’s efforts to remain steadfast and efficient in operations. Mashreq’s profit over the first half of the year rose 13 percent YoY to AED4.05 billion. Moreover, the bank has received an A rating by Fitch due to its strong asset quality and ability to generate earnings. Mashreq has also recently announced a partnership with IBM POWER10 to provide solutions to improve the bank’s digital services and meet the requirements of the developing market.
ADNOC Logistics & Services
ADNOC Logistics & Services Plc is a UAE-based energy maritime logistics company. It operates through the following business units: integrated logistics, shipping, marine services, and others.
“The company’s shares have rallied 41.25 percent YTD, driven by strong financial performance in the first half of the year. The net profit for the six months that ended June 30 was 7 percent higher YoY, driven by growth in integrated logistics, shipping, and marine services. Revenue for Q2 2024 was up 42 percent YoY, while dividend payable went up 5 percent. Moreover, several big banks have maintained a buy rating on the company due to its promising future growth potential. This has additionally contributed to the stock’s rally,” Valecha said.
Emirates Integrated Telecommunications Company PJSC (Du)
Emirates Integrated Telecommunications Company PJSC (Du) is a leading telecommunications company in the UAE. The company’s shares have rallied 38.73 percent YTD based on strong financial performance and robust partnerships.
“Du’s quarterly revenues grew by 7.3 percent, the H1 EBITDA margin expanded to 44.0 percent, and the net profits rose by 54.2 percent year-over-year. The mobile customer base grew by 2.9 percent, while the fixed customer base rose by 12.7 percent YoY,” Valecha said.
“Moreover, interim cash dividend distribution increased 53.8 percent over the year. Recently, the company achieved a major milestone in its ICT business with a strategic partnership with Oracle Alloy. Du also partnered with Nokia and Cognizant to boost digital transformation in the region and generate shareholder value. Moreover, the company is well-positioned to support the UAE government’s digital strategy and drive future growth,” Valecha said.
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