DFM and ADX Submit Third Weekly Achieve as UAE Markets Begin 12 months Sturdy : Feedback from Vijay Valecha , CIO – Century Monetary

Regardless of Friday’s wobble, Dubai’s benchmark DFM Normal Index delivered its third consecutive weekly acquire. It ended the week at 6,484.38. On January 22, the index gained 1.5%, marking its largest acquire since mid-July 2025. In actual fact, Dubai began the yr on a strong footing, delivering a month-to-date acquire of seven.2%. This week’s features stand at 2.7%, supported by an general uptick in danger urge for food after Trump determined to not impose 10% tariffs on European nations over the Greenland dispute. Regardless of this stellar efficiency, the DFM Normal Index’s ahead P/E stands at 11.8x, making it enticing for home and overseas buyers. ADNOC Distribution’s share value acquired a lift this week after distinguished Wall Avenue banks raised the worth goal amid excessive retail gasoline quantity progress.

High gainers for the week embrace SHUAA Capital (+8.77%), Dubai Investments (+8.40%), TECOM Group (+8.04%), Union Properties (+6.86%), and Islamic Arab Insurance coverage (+6.26%). By comparability, Nationwide Cement, Sukoon Takaful, and Dubai Nationwide Insurance coverage & Reinsurance have been the highest laggards, falling by 5.01%, 3.85%, and a couple of.40%, respectively. Wanting on the sector-wise efficiency, all sectors barring Client Discretionary (-1.21%) and Supplies (-5.01%) ended the week in constructive territory. Actual Property was the most important winner, posting a 4.62% acquire. This was adopted by Utilities (+3.08%), Financials (+2.38%), Industrials (+2.30%), Client Staples (+1.58%), and Communication Companies (+0.97%).

The ADX Normal Index additionally delivered its third straight weekly acquire, regardless of declining 0.2% on Friday to finish the week at 10,285.77. The index gained 1.6% this week, marking its steepest acquire since early December 2025. Its features for the month stand at round 2.9%, conserving the index simply 0.9% under its 52-week excessive achieved in mid-2025. Healthcare emerged because the best-performing sector this week, yielding a return of over 10%. Actual property was the second-best performer, gaining over 5% this week. Know-how and Primary Supplies superior 3.54% and a couple of.17%, respectively. On the flip facet, sectors like Utilities (-1.69%), Client Discretionary (-0.58%), and Client Staples (-0.17%) underperformed.

Upcoming Earnings –
In Dubai, huge banks like Emirates NBD, Mashreqbank, Emirates Islamic Financial institution, and Ajman Financial institution are slated to report earnings subsequent week, alongside Dubai Monetary Market PJSC and Sukoon Insurance coverage PJSC. In the meantime, noteworthy corporations reporting earnings in Abu Dhabi embrace First Abu Dhabi Financial institution, Abu Dhabi Business Financial institution, Nationwide Financial institution of Ras Al Khaimah, Nationwide Financial institution of Fujairah, NMDC Power, to call a couple of.

Wanting Forward –
Shifting ahead, international headlines regarding Trump and different geopolitical points may dictate international danger sentiment, thereby impacting the UAE markets as nicely. Subsequent week, the U.S. can also be set to announce its first rate of interest choice for 2026. Given the foreign money peg between the AED and USD, the CBUAE can also be anticipated to reflect the Fed’s transfer, which may spark volatility within the shares of rate-sensitive sectors within the UAE. This consists of banks, and motion may be compounded by earnings bulletins by main banks within the area. Even actual property corporations may expertise some volatility, alongside utilities and infrastructure-linked shares.