(MENAFN- Khaleej Times)

Equity markets in the UAE staged a strong recovery in October, with both Dubai and Abu Dhabi posting gains amid improving global investor sentiment and regional economic resilience

The Dubai Financial Market (DFM) led the UAE's performance, surging 3.8 per cent in October to close at 6,059.4 points, reversing two months of declines. The rally was driven by robust gains in the Real Estate (+7.7 per cent) and Financials (+4.3 per cent) sectors. Heavyweight banks such as Emirates NBD (+15.6 per cent) and Commercial Bank of Dubai (+2.6 per cent) played a pivotal role in lifting the index. Emirates NBD's announcement of a planned $3.05 billion investment for a majority stake in India's RBL Bank further boosted investor confidence.

Recommended For You Dubai: Gold prices climb slightly; analysts predict bullish market

Real estate stocks also saw broad-based gains, with five of seven constituents rising. The sector's strength reflects Dubai's booming property market, which continued its record-breaking run in Q3 2025. Apartments accounted for 86 per cent of all residential transactions, underscoring sustained demand from global investors.

Trading activity on DFM was mixed. While volumes rose slightly to 3.9 billion shares, the total value traded dipped 7.7 per cent to Dh12.9 billion. Emaar Properties led in value traded, followed by Emirates NBD and Dubai Islamic Bank.

Meanwhile, the Abu Dhabi Securities Exchange (ADX) posted a 0.9 per cent gain, closing above the 10,000-point mark at 10,099.9 points. The uptick was supported by positive movements in key sectors including Financials (+1.4 per cent), Telecommunications (+2.9 per cent), and Consumer Discretionary (+1.9 per cent). Notable performers included National Bank of Fujairah (+13.5 per cent) and First Abu Dhabi Bank (+11.5 per cent).

Top gainers on ADX included GFH (+33.7 per cent), Aram Group (+31.4 per cent), and Abu Dhabi Ports (+22.8 per cent), while Abu Dhabi National Takaful led the decliners with a 30.7 per cent drop.

Trading volumes rose 17.8 per cent to 6.2 billion shares, while traded value increased 5.8 per cent to Dh26.5 billion. Adnoc Gas was the most active stock by both volume and value.

On the macroeconomic front, the IMF projected Dubai's GDP to grow by 3.4 per cent in 2025, driven by the non-oil sectors, particularly tourism and real estate. For Abu Dhabi, GDP growth is forecasted at 6 per cent, supported by increased oil production and strong performance in services and real estate.

Across the Gulf, the MSCI GCC Index rose 1.2 per cent, marking its second consecutive monthly gain. The rally was fueled by optimism over global trade talks and a synchronized 25 bps rate cut by the US Federal Reserve and most GCC central banks, excluding Kuwait.

Oman emerged as the top performer with an 8.3 per cent gain, followed by Bahrain (+5.9 per cent) and Dubai (+3.8 per cent). Qatar was the only market to decline, slipping 0.9 per cent due to weakness in large-cap stocks.

Sector-wise, diversified financials (+6.6 per cent), retailing (+6.4 per cent), and utilities (+4.8 per cent) led the gains, while consumer durables and apparel (-10.7 per cent) posted the steepest decline.

Kuwait's Boursa continued its strong run, with the Main 50 Index up 4.1 per cent, supported by mid- and small-cap stocks. The All Share Index rose 2.7 per cent, maintaining its position as the GCC's top performer year-to-date with a 22.7 per cent gain.

In Saudi Arabia, the TASI Index edged up 1.3 per cent, buoyed by strong Q3 earnings in the banking sector and gains in utilities and energy stocks. However, the market remains down 3.2 per cent year-to-date.

MENAFN02112025000049011007ID1110283268