Page 58 - UNION PROPERTIES GENERAL REPORT - April 2024_Neat

minutes. So was Union Properties, down 1.53 per cent. Mega-banks Emirates NBD and DIB
too have seen some declines. The main gainer in the early session is Gulf Navigation, up
2.9 per cent.

By 10.45am, the pace of the drops was slowing down. Emaar Development is back in
positive, while Emaar Properties’ slip narrowed to under 1 per cent. Analysts expect the
choppiness in the UAE and Gulf markets to continue until more clarity shows up on the Iran-
Israel flashpoint.

At the broader level, UAE and GCC investors are weighing all the pros and cons of this
unfolding geopolitics, after Iran fired missiles and drones onto Israel.

On Sunday (April 14), the Saudi Tadawul initially dragged lower as the world watched what
could happen next on the ground.

Even then, GCC investors were seen as holding their nerve. “We believe that yesterday’s
(April 14) decline was much milder than expected,” said Junaid Ansari, Director of
Investment Strategy and Research at Kuwait’s Kamco Invest.

“By close yesterday, the overall market cap was up due to gain in Saudi Aramco share price
that more than offset the broader decline in the region and in Saudi Arabia.” Also, some of
the blue-chip UAE stocks remain close to their 12-month highs, and the present moment
would have been conducive for a measure or profit taking.

‘Buying opportunity’
“Apart from efforts for de-escalation, we believe that this reflects investor’s confidence about
sustained economic and corporate profit growth in the near term,” said Ansari.

“Any further decline should also be seen as a buying opportunity especially for specific
picks in banks and telecoms given the extended interest rate peak and delayed cuts. These
sectors should benefit from elevated profits expected in Q1-24 (results) and the rest of the
year.”

What will the Q1-2024 numbers have to say?
Another quarter of good results are expected, with some of the UAE banks being among the
first to announce the first financials of the year. Their numbers will hold up as demand for
credit remains on the higher side and there have been no interest rate cuts to date. Also,
some of the blue-chip UAE stocks remain close to their 12-month highs, and the present
moment would have been conducive for a measure or profit taking.

https://bazaartimes.com/market-caution-uae-and-gulf-investors-react-to-latest-middle-east-
crisis-with-gold-and-bitcoin-movement/