Report Summary

Volatility remains elevated in global markets, driven by dollar and yen fluctuations, and reinforced by shifting sentiment around AI-related stocks. The Japanese yen’s potential climb could pressure equities, while a new wave of dollar weakness may open room for certain risk assets. Locally, results from Presight and ADNOC Drilling show healthy top-line growth, though some items warrant closer scrutiny. Emaar’s earnings are anticipated after the session. In global stocks, Tesla’s rally from the 410‒415 range has continued, with attention on another AI-driven name that may bounce back to 700.

UAE Markets

Presight FY 2025 Results – Quick Take:

Sales grew strongly in 2025, meaning the company won more business and delivered more projects than last year.
Profit increased, but not as much as sales because operating costs rose faster and taxes were higher.
Profit margins weakened, so the company kept less profit from each dirham of revenue compared with 2024.
Cash generated from day-to-day operations dropped sharply, mainly because more work was done but not yet billed or collected.
The company still has a strong cash balance, but investors should watch receivables/contract assets (cash collection timing) and the large goodwill balance.

ADNOC Drilling FY25 Results – Quick Take:

The company made more money overall: revenue grew 22% to about USD 4.9 bn as drilling and related services stayed busy.
Profit still rose, but slower than sales: net profit increased 11% to about USD 1.45 bn because operating costs also went up.
Cash generation was strong: cash from operations jumped 35%, meaning the business brought in more cash from day-to-day activity.
Despite that, cash on hand fell: the company ended the year with less cash mainly due to large dividend payments and other financing movements.

Global Markets

Gold Shines Bright: Gold prices surged significantly, rising about 1.35% to trade above $5,070 per ounce. Investors flocked to the precious metal as a safe haven and a hedge against ongoing inflation concerns.
The Surging Yen: The Japanese Yen was the star of the currency market, extending a powerful rally for its third straight day. It strengthened to nearly 152 per dollar, driven by political clarity in Japan and expectations that interest rate gaps with the US are narrowing.
Bitcoin Under Pressure: In contrast to gold’s gains, Bitcoin took a hit, falling roughly 2-3% to hover just above $67,000. This "crypto-chill" followed a period of sharp declines from recent highs, putting extra pressure on the digital mining industry.
Jobs Data Surprise: The US economy added 130,000 new jobs in January (nearly double the forecast), and unemployment fell to 4.3%. While this sounds like good news, it actually dampened hopes for early interest rate cuts, keeping the stock market in a "wait-and-see" mode.
Mixed Sector Performance: Energy stocks rose by over 2% as oil prices climbed, while tech and software companies faced a sell-off. Investors seem to be rotating money out of high-growth tech firms and into "defensive" sectors like energy and staples.

News

Deyaar Development’s Board of Directors has recommended a cash dividend distribution of 5% of the share capital (equivalent to 5 fils per share) for the fiscal year 2025.
Abu Dhabi Ship Building (ADSB) reported a 61% decline in annual net profit to AED 30.3 million (AED 0.14 per share) for 2025, primarily due to revenue recognition delays and increased business development expenditures—including costs for the biennial IDEX/NAVDEX exhibition—though the company expects to recover a portion of these deferred results in 2026.

Investment Recommendations

SanDisk (SNDK): Buy at $590, target $650, stoploss below $570.
Abu Dhabi Ports (ADPORTs): Buy at AED 5.20, target at AED 5.40, stoploss below AED 5.15.