Report Summary

Markets are increasingly cautious amid potential geopolitical concerns and a short-term correction in gold and silver. Locally, Emaar and Emaar Development are viewed as having met earlier targets following strong January gains, prompting some investors to take profits. Globally, technology shares reflect heightened risk, with record-high trading volume appearing in a short ETF tied to the Magnificent Seven. Key ideas raised in the briefing include watching Northern Oil and Gas (NOG) for continued upside. Diversification remains paramount.

UAE Markets

Overview of Abu Dhabi and Dubai

Proceed with Caution: The recent "hot streak" in the markets has cooled down. Investors are being advised to keep their guard up and avoid keeping too much money in stocks overnight in case unexpected global news causes a sudden drop.
Emaar Properties & Development: After a strong run in January where both stocks hit their price targets, the experts suggest it’s a good time to "lock in" your wins by selling some shares rather than waiting for them to climb higher.
Abu Dhabi Islamic Bank (ADIB): This stock saw a massive jump recently (climbing from 20.00 to 26.00). Because it rose so fast, there is a general feeling that it might be due for a break, so investors are being extra careful.
Abu Dhabi Commercial Bank (ADCB): Similar to the others, this bank had a solid January. However, analysts believe the current price already reflects its true value, meaning there might not be much room left for quick gains right now.
Quick Take – NMDC Group FY2025
- Revenue rose ~10% to AED 28.8 bn as project activity stayed strong.
- Profits grew faster than revenue because margins improved, meaning the company kept more earnings from each dirham of sales.
- Cash flow was weaker than last year since more cash was tied up in receivables/contract balances (slower collections).
- Taxes increased sharply, and cash remained roughly unchanged despite higher profits—so working capital and collections are the main watch items.

Global Markets

Tech Titans Hit a Speed Bump: The dominant "Magnificent Seven" tech stocks are facing a reality check. After a massive run-up, investors are now worried about a deep correction, leading many to bet against these giants using "inverse" funds that profit when tech prices fall.
The "Trillion-Dollar" Milestone: In a major shift from tech to traditional retail, Walmart made history on February 4th by officially hitting a $1 trillion market value, proving that everyday consumer spending remains a powerhouse in the US economy.
Precious Metals Lose Their Shine: Gold and silver are currently in a "cooling off" phase. Experts anticipate gold could drop toward the $4,500–$4,300 range, while silver is searching for a bottom near $65 after a very sharp and sudden decline from the $90s.
A Shift Toward Stability: With tech feeling risky, investors are moving money into "steady" sectors. Northern Oil and Gas (NOG) in the US is gaining favor for its reliable profit protection, and Bank Riyad is standing out as a strong performer in the Middle Eastern financial sector.

Investment Recommendations

RAK Properties (RAKPROP): Buy at 1.30, target at 1.40, stoploss below 1.28.