In March 2023, the UAE market indices were impacted by the decline of the banking sector stocks, similar to global markets affected by the collapse of “Silicon Valley Bank”. This caused confusion among investors, resulting in the Abu Dhabi market index falling 4.2% to 9430.25 points monthly. Likewise, the Dubai Financial Market index fell 0.9% to 3406.72 points, with major banks’ shares collectively decreasing as well.
During the month, the shares had gained monthly liquidity of 46.35 billion dirhams, with 39.59 billion dirhams in the Abu Dhabi market and 6.76 billion dirhams in the Dubai market. The traded shares numbered 7.6 billion, with 2.74 billion shares in Dubai and 4.87 billion shares in Abu Dhabi, made in 302,142 transactions.
Since the beginning of the year, the stock liquidity recorded 121.7 billion dirhams, with 102.68 billion dirhams in the Abu Dhabi market and 19 billion dirhams in the Dubai market. Abu Dhabi’s market decreased by 7.6% in the first quarter, while Dubai’s market index gained 2.1% at 3406.72 points.
Over the month, the market value of the markets at the end of March recorded 3.317 trillion dirhams, adding 202 billion dirhams to the market value within a month. The market value was distributed in March by 2.72 trillion dirhams in the Abu Dhabi market and 594.73 billion dirhams in the Dubai market.
The Dubai market index declined by 0.9% at the level of 3406.72 points, mainly pressured by bank stocks during March. The utilities, industry, and real estate sectors were positive, with Gulf Navigation increasing by 28% and Salik by 8.6%. On the other hand, Air Arabia decreased by 6.5%, and Aramex decreased by 7.7%. Dewa increased by 6%, and Empower by 9% in the utilities sector.
On the other hand, the general index of the Abu Dhabi Securities Market fell in March 2023 by 4.2% to the level of 9430.25 points, influenced by the decline of banking, real estate, industry, and energy stocks. “ADNOC Drilling” rose by 19.34%, and “ADNOC Gas” rose 6.76%, compared to a decline in “ADNOC Distribution” and first Abu Dhabi by 8.52%.
In terms of the company’s stock, Al Alamiya Holding had the highest liquidity in the month of March in the Abu Dhabi market, regarding 16.8 billion dirhams, followed by Alfa Abu Dhabi and Multiplay. Meanwhile, Emaar Properties topped the monthly trading in the Dubai market, followed by Emirates National Dubai and Dubai Islamic.
Furthermore, ADNOC Drilling, Burjeel, and Umm Al Quwain Bank recorded the most significant increases during the month in the Abu Dhabi market, whereas Ghada Holding faced the most significant decline. In contrast, Ajman Bank registered the most massive gain, followed by Gulf Navigation and Al Ramz Corporation. Commercial Dubai, Dubai Financial, and Amlak Finance had the most significant declines.
The banking sector stocks pressured the UAE market indices in March 2023, similar to the global markets that were affected by the collapse of the “Silicon Valley Bank”, which caused investor confusion. The Abu Dhabi market index fell on a monthly basis by 4.2% to the level of 9430.25 points, while the Dubai Financial Market index fell 0.9% at the level of 3406.72 points, with a collective decline in the shares of major banks.
The shares gained a monthly liquidity of 46.35 billion dirhams, of which 39.59 billion dirhams were in the Abu Dhabi market, and 6.76 billion dirhams in the Dubai market, and the traded quantities of shares amounted to 7.6 billion shares, distributed by 2.74 billion shares in Dubai and 4.87 billion shares in Abu Dhabi This came through the implementation of 302,142 transactions.
Stock liquidity since the beginning of the year recorded 121.7 billion dirhams, of which 102.68 billion dirhams were in the Abu Dhabi market, and 19 billion dirhams in the Dubai market.
In terms of the performance of market indices in the first quarter, the Abu Dhabi market declined by 7.6%, while the Dubai market index rose by 2.1%, at 3406.72 points.
202 billion dirhams, new market gains for shares in March
The market value of the markets at the end of March recorded 3.317 trillion dirhams, compared to 3.115 trillion dirhams at the end of last February, an increase of 6.5%, thus adding 202 billion dirhams to the market value within one month, and the market value was distributed in March by 2.72 trillion dirhams in the Abu Dhabi market. And 594.73 billion dirhams in the Dubai market.
In detail, the Dubai market index declined during the month of March by 0.9% at the level of 3406.72 points, mainly under pressure from bank stocks, compared to an increase in the shares of the utilities, industry and real estate sectors. In the financial sector, “Dubai Islamic” fell 8.5%, “Dubai Financial” 17%, “Emirates NBD” 3.2%, “Shuaa” 2.2%, and “Amlak” 15%, compared to an increase in “GFH” by 3%.
In the industry, “Gulf Navigation” increased by 28% and “Salik” by 8.6%, compared to the decline of “Air Arabia” by 6.5% and “Aramex” by 7.7%. It also rose in the utilities sector, “Dewa” by 6%, “Empower” by 9%, and “Tabreed” by 0.6%.
In real estate, “Emaar Development” rose 15%, compared to the decline of “Deyaar” by 0.3% and “Union Properties” by 0.6%, while the shares of “Emaar Properties” and “Tecom” remained unchanged.
The general index of the Abu Dhabi Securities Market fell in March by 4.2% at the level of 9430.25 points, affected by the decline in the sectoral indices of banking, real estate, industry and energy stocks. In the financial sector, “First Abu Dhabi” decreased by 8.52%, “Abu Dhabi Commercial” by 0.95%, “Abu Dhabi Islamic” by 4.4%, and “Multiple Play” by 19%, compared to an increase in “Al Alamiah Holding” by 0.23%.
In the telecommunications sector, “E&” shares decreased by 13.5% and “Yahsat” by 0.75%. In real estate, the share of “Al-Dar” fell 1%, “Ishraq” 5.4%, and “Manazil” 4%, compared to an increase in “Ras Al-Khaimah Real Estate” by 0.17%.
In terms of energy shares, “ADNOC Drilling” rose 19.34% and “ADNOC Gas” 6.76% (the company’s shares were listed on March 13), and “Dana Gas” rose 3.16%, compared to a decline in “ADNOC Distribution” 3.24%.
In the industries sector, “Al-Afa Abu Dhabi” rose 2.9%, and “Abu Dhabi Ports” 1.62%, compared to a decline in “sea dredging” by 41.84% and “Arkan” by 8.9%. In terms of other stocks, “Americana” rose 8.24%, “Borouge” 0.78%, “VirtGlobe” 1.27%, “Burjeel” 16.5%, and “Taqa” 3.5%.
The share of “Al-Alamiya Holding” achieved the highest liquidity in the month of March in the Abu Dhabi market, with regarding 16.8 billion dirhams, closing at the level of 396 dirhams, followed by “Alfa Abu Dhabi” with a liquidity of 2.82 billion dirhams and closed at the level of 22.1 dirhams, then “Multiplay” with transactions of 1.54 billion dirhams. dirhams, reaching a price level of 3.24 dirhams, and “marine dredging” by attracting 1.53 billion dirhams, to close at 22.16 dirhams.
In the Dubai market, “Emaar Properties” topped the monthly trading with a value of 1.9 billion dirhams, closing at 5.6 dirhams, followed by “Emirates National Dubai” with liquidity of 717.85 million dirhams, reaching a price of 13.15 dirhams, then “Dubai Islamic” with transactions of 650 million dirhams to close. At the level of 5.23 dirhams, and fourth came «Air Arabia», with transactions of 424 million dirhams, closing at a price of 2.12 dirhams.
- The highs and lows
And regarding the shares that rose the most during March in the Abu Dhabi market, the first position came for “ADNOC Drilling” by 19.34%, closing at 3.95 dirhams, followed by “Burjeel”, which rose 16.5%, to close at 2.33 dirhams, then “Umm Al Quwain Bank”, up 14.67% to The level of 1.72 dirhams.
On the other hand, “Ghada Holding” recorded the largest decline by 54.68%, closing at 39 dirhams, followed by “Marine Dredging”, down 41.84%, to reach the level of 22.16 dirhams, then “ESG”, down 32.6% and closing at 4.7 dirhams.
“Ajman Bank” recorded the most increase during March, by 35%, to close at 1.43 dirhams, followed by “Gulf Navigation”, which rose by 28%, to reach the level of 1.15 dirhams, then “Al Ramz Corporation”, which increased by 20% to the level of 1.24 dirhams.
On the contrary, the declines were led by “Commercial Dubai”, which fell 17% to the level of 4.15 dirhams, then “Dubai Financial”, which fell by the same percentage, 17%, at the price of 1.27 dirhams, and thirdly came “Amlak Finance”, which fell 15% to the level of 0.655 dirhams.
In conclusion, the UAE market indices faced a challenging month in March 2023 due to the collapse of Silicon Valley Bank, leading to confusion among investors. The banking sector stocks experienced pressure in both the Abu Dhabi and Dubai markets, resulting in a decline in market indices. Despite this, total market gains for shares reached 202 billion dirhams, and the market value at the end of March recorded 3.317 trillion dirhams. While the Dubai market index declined, some sectors like utilities, industry and real estate witnessed an increase in shares. Similarly, in the Abu Dhabi market, energy stocks like ADNOC Drilling saw a rise, while banking, real estate, industry and telecommunication stocks faced a decline. The market dynamics show the resilience of the UAE economy, and the markets remain attractive and promising for investors who are savvy and diligent in their investment strategies.
