March brought a wave of bustling trading activity to the Dubai Financial Market (DFM), according to the latest report released by Kamco Invest’s GCC Markets Monthly Report on Monday. The total volume of shares traded on the DFM saw a significant increase of 36.9 percent, soaring to 4.8 billion shares, up from 3.5 billion in February.
Despite the increase in trading volume, the DFM General Index experienced a 1.5 percent drop, marking its first decline after four consecutive months of gains, closing the month at 4,246.3 points. This performance exhibited a balanced sectoral outcome with half of the eight sectors witnessing gains while the other half recorded declines.
The financial sector, being the largest weighted sector in the exchange, took the biggest hit with a 5.2 percent decline. This drop was primarily influenced by substantial share price falls in key constituent companies, including Mashreq Bank which plummeted by 14.6 percent. Following suit, the consumer staples sector and the communications services index also faced declines of 1.4 percent and 1.2 percent, respectively.
Contrastingly, the real estate index emerged as a strong performer in March, recording a 4.0 percent rise to close at 8,034.1 points. This remarkable growth was driven by substantial gains in Deyaar Development and Union Properties, which saw their shares increase by 11.5 percent and 20.3 percent, respectively. Union Properties, in particular, stood out, topping the monthly gainers table with a 20.3 percent jump in share price, following exceptional financial results for the fiscal year 2023 that demonstrated a 60 percent annual growth in operating profits.
The overall value of shares traded during the month also witnessed an uptick, albeit at a slower pace, increasing by 11.1 percent to Dh8.8 billion compared to Dh7.9 billion in February. Union Properties led the monthly volumes traded chart with 1.1 billion shares. In terms of value, Emaar Properties was at the forefront, with Dh1.7 billion worth of shares traded, followed closely by Dubai Islamic Bank and Emaar Development.
In contrast, the FTSE ADX index in Abu Dhabi recorded a marginal 0.3 percent decline in March, continuing its downward trajectory in 2024 and closing at 9,228.09 points. The index’s year-to-date performance also saw a decrease of 3.7 percent, positioning it as the second-biggest decliner in the GCC. The Abu Dhabi market showed a balanced division among its ten sector indices – half experiencing declines and the other half registering gains.
In particular, the consumer discretionary index posted the largest fall among the indices, dropping by 3.0 percent, majorly impacted by a decrease in Abu Dhabi National Hotels Company’s share prices. Conversely, the consumer staples index witnessed a significant 10.8 percent gain, largely propelled by Agthia Group’s 12.2 percent jump in share prices.
This surge in trading activity in the DFM, combined with the contrasting performances across different sectors and indices, reflects the dynamic nature of the market. Investors and market watchers continue to keenly observe these trends, offering insights into the ever-evolving financial landscape of the region.
