Dubai Stock Market Rises in Mid-Week Trading Amid Strong Corporate Earnings

The Dubai stock market rose at the close of mid-week trading on April 25, 2024, driven by robust financial results from leading companies in the region. Emirates NBD, one of the largest banks in the UAE, reported a record profit of AED 6.7 billion in the first quarter of 2024, a 67% surge compared to the same period last year.

The bank's impressive performance was propelled by regional growth, increased transaction volumes, a low-cost funding base, and substantial recoveries from impaired loans. Emirates NBD's asset base surpassed AED 900 billion for the first time, with its market-leading deposit franchise growing by AED 26 billion in the first quarter, including a remarkable AED 21 billion increase in low-cost current and savings accounts.

Emirates Islamic, the Islamic banking arm of Emirates NBD, also reported a strong financial performance, with its net profit surging 35% year-on-year to a record AED 811 million in the first quarter of 2024. The bank's total income grew by 19%, underpinned by operational efficiency, strategic financial management, and a positive economic outlook in the region.

Why this matters: The strong financial results from major companies like Emirates NBD and Emirates Islamic reflect the robust economic recovery and growth in the UAE and the wider region. The Dubai stock market's positive performance amid these earnings reports indicates investor confidence in the country's financial sector and overall economic prospects.

In other market news, BHM Capital, a financial services firm, has received approval from the Dubai Financial Market (DFM) to introduce and practice the price stabilization mechanism for newly listed stocks. Spinneys, a retail chain, will be the first company to benefit from this service upon listing 25% of its shares for public subscription between April 23 and 29, 2024.

Abdel Hadi Al Sa'di, CEO of BHM Capital, stated, "This approval will help newly listed companies maintain a stable share price and attract more investors to the Dubai stock market." The price stabilization mechanism will enable companies to appoint BHM Capital as their price stabilizer manager, allowing them to engage in transactions to support the stock price for a specified period following the listing, following market rules and regulations set by the Securities and Commodities Authority in the UAE.

Key Takeaways

• Dubai stock market rose on strong Q1 2024 results from Emirates NBD, UAE's largest bank.
• Emirates NBD reported a record Q1 2024 profit of AED 6.7 billion, a 67% surge year-on-year.
• Emirates Islamic, Emirates NBD's Islamic banking arm, also reported a 35% surge in net profit.
• BHM Capital received approval to implement a price stabilization mechanism for newly listed stocks.
• Price stabilization aims to maintain stable share prices and attract more investors to the Dubai market.