MarketSmart Sell Candidates - stocks to sell

Air Arabia 56% increase in Net Profit

Author

Marc Samouilhan
February 18, 2025

MarketSmart Brief

Over the past week, the Dubai Financial Market (DFM) has experienced notable developments:

  1. Market Performance: On February 14, 2025, the DFM index reached its highest level since May 2014, closing at 5,362 points. This surge was driven by strong corporate earnings, particularly in the industrial and materials sectors.

  2. Corporate Earnings:

    • Salik Company: Reported a full-year net profit of 1.16 billion dirhams, surpassing analyst expectations.

    • Air Arabia: Achieved a 56% increase in fourth-quarter net profit.

  3. Financial Sector Growth: The Dubai International Financial Centre (DIFC) reported a 37% increase in revenue for 2024, totaling 1.78 billion dirhams. Operating profit rose by 55% to 1.33 billion dirhams. This growth is attributed to Dubai's favorable business environment and its appeal to global businesses and affluent individuals.

  4. Hedge Fund Expansion: Dubai has seen a 50% increase in the number of hedge funds, now totaling 75 in its financial hub. This growth is driven by the establishment of multi-billion-dollar firms such as Tudor Capital and Walleye Capital in the region.

  5. Upcoming IPOs:

    • Etihad Airways: Plans to go public this year, aiming to sell a 20% stake and potentially raise around $1 billion.

MarketSmart Sell Candidates

Based on recent analyst evaluations and technical indicators, the following five stocks listed on the Dubai Financial Market (DFM) and Abu Dhabi Securities Exchange (ADX) have been identified as potential sell candidates:

  1. Dubai Financial Market PJSC (DFM.DB): Analyst consensus rates this stock as a "Sell," with 1 strong sell, 5 sell, 2 hold, and 2 strong buy recommendations. The average 12-month price target is 1.45 AED, suggesting a modest upside of 2.48%.

  2. Abu Dhabi National Energy Company PJSC (TAQA): The stock has experienced a 3.12% decline over the past year.

  3. First Abu Dhabi Bank PJSC (FAB): FAB's share price has decreased by 7.11% over the past year.

  4. Arkan Building Materials Company PJSC (ARKAN): The company has seen a 9.86% decline in its share price over the past year.

  5. Abu Dhabi National Hotels (ADNH): ADNH's share price has decreased by 33.99% over the past year.