Dubai’s economic diversification program once again took center stage on Sunday, as data revealed that the DFM General Index achieved its sixth consecutive monthly gain in November 2024, marking the largest monthly increase among GCC markets. According to Kamco Invest, this monthly performance propelled the year-to-date gains for the DFM index to the highest in the GCC, reaching 19.4 percent. The Dubai benchmark concluded the month 5.6 percent higher at 4,847.3 points.
In contrast, GCC equity markets experienced a decline for the second consecutive month, driven by a global rout in emerging market indices and softer energy prices. The broader GCC decline was influenced by stronger-than-expected economic growth in the US and higher-than-expected inflation figures for October 2024, leading to speculation that US interest rates may remain elevated for an extended period. The MSCI GCC Index fell 1.2 percent during the month, following declines in three out of the seven GCC benchmarks in the previous month.
Sector-wise, seven out of the eight sectors recorded growth during the month. The overall index surge was primarily supported by the robust growth of the materials and real estate indices, which saw gains of 33.9 percent and 14.5 percent, respectively. The real estate index's growth was largely attributed to gains in large-weighted Emaar Development (22.3 percent) and Deyaar Development (37.8 percent), while shares of National Cement Company in the materials sector jumped 33.9 percent.
In terms of monthly performance, National International Holding led with a gain of 52.5 percent, followed by Deyaar Development and National Cement Company with gains of 37.8 percent and 33.9 percent, respectively. On the decliners’ side, Al Mazaya Holding Company topped the list with a decline of 18.2 percent, followed by National Industries Group and United Foods Company with declines of 15.1 percent and 10.0 percent, respectively.
Total monthly volume surged 46.8 percent last month to 4.8 billion shares, compared to 3.3 billion shares in October, while monthly value traded increased by 46 percent to Dh11.4 billion. Shares of Emaar Properties topped the value traded chart with total trades worth Dh2.9 billion, followed by Emirates NBD and Dubai Islamic Bank at Dh1.1 billion and Dh918.2 million, respectively.
In Abu Dhabi, the FTSE ADX index fell 1 percent in November, following a 1.0 percent decline in October 2024. The index closed the month at 9,234.80 points, pushing the market into the red for the year-to-date performance with a decline of 3.6 percent. The performance of the ten sector indices on the exchange was predominantly negative, with seven indices recording declines.
The consumer staples index posted the largest decline among the indices in November, dropping 18.4 percent to close at 12,784.5 points, after the newly listed Lulu Retail Holdings Company recorded a 12.3 percent drop in shares. The telecommunications index reported the second-largest monthly decline, with a 6.5 percent drop to close at 4,067.1 points, mainly due to the 6.5 percent fall in shares of Emirates the Telecom Group.
Trading activity declined in November after three consecutive monthly gains. Total volume of shares traded fell by 57.8 percent to 6.3 billion shares, compared to 14.9 billion shares in the previous month. The total value of shares traded also decreased by 58.4 percent to Dh25.3 billion in November, compared to Dh60.8 billion in October 2024.
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