Emirati stocks experienced minimal fluctuations but closed in the red on Thursday, reflecting a generally pessimistic sentiment prevalent in the Middle East. By the conclusion of Thursday's trading session, the FTSE ADX General Index saw a slight decline of 0.098%, while the DFM General Index remained unchanged.
The ongoing intensified bombing campaign in Lebanon by Israel continues to cast a shadow over investor sentiment. Moreover, the political deadlock surrounding the US elections adds to the uncertainties affecting the regional outlook. With concerns rising, analysts noted, "Having sold off more than 1.4% yesterday, ICE Brent bounced back this morning and edged towards $76/bbl.
The market remains entangled between supply risks tied to the persistent tensions in the Middle East and ongoing demand worries. Furthermore, the anticipation of a balanced oil market in 2025 will significantly influence price movements," according to a note from ING. On another note, the United Arab Emirates' Ministry of Finance recently unveiled two agreements with the International Monetary Fund, emphasizing the nation’s commitment to the Resilience and Sustainability Trust Fund, alongside the Poverty Reduction and Growth Trust Fund.
In the corporate realm, the earnings season is picking up momentum, with several firms announcing their latest financial results. Notably, NMDC Energy (ADX:NMDC) and the Commercial Bank of Dubai (DFM:CBD) are among the companies that have shared their updates. Additionally, Abu Dhabi Commercial Bank (ADX:ADCB), recognized as the Emirates' third-largest financial institution, presented its third-quarter results showcasing both profit and operating income improvements year over year.
The bank's outlook is also upbeat for the coming year, contributing to a stock price increase of 2.51%. Reflecting on their growth, the bank stated, "Considering the robust trajectory of loan growth, we will begin providing guidance on the expansion of net interest income. Expectations for full-year 2024 project an approximate 8% growth rate in net interest income, with medium-term guidance indicating high-single-digit growth." However, in contrasting news, Emirates NBD (DFM:EMIRATESNBD) saw its shares decrease by 2.30% following analysts at Arqaam Capital's decision to downgrade the stock from 'buy' to 'hold,' along with a reduction in the price target from 21.90 to 21.20 Emirati dirhams..