DFM's Parkin, ADX's PureHealth shares dazzle even with Trump tariff market wobbles
Dubai: The Parkin stock on DFM and PureHealth in ADX have emerged clear winners with investors since April 2, which was when US President Trump roiled global markets with his favorite word – tariffs.
The share price of Parkin, the Dubai parking space operator, has shot up 9% since then and is currently at Dh4.97. And just yesterday (April 16), it was up 3.54% while the wider DFM index slipped 0.48%. Market watchers are tracking Parkin to see if it can beat the next level – its current 52-week high of Dh5.44.
On ADX, PureHealth has put in a stellar 9% gain since April 2. The Abu Dhabi hospital and healthcare services holding company is trading at Dh2.72, and the current spike is seen as a bit of catching up with the 'real' value of the stock, sources say.
But there is also a bigger investment flow picture emerging.
Post the tariff announcements, 'A weak US dollar implies that in the investing ecosystem, the 'rest of the world' trade is gaining momentum,' said Sameer Lakhani, Managing Director at Global Capital Partners.
'In this atmosphere, GCC stock market valuations appear to be attractive. Especially for listed companies where the marginal returns of capital are high and require little or no capex.
'That's case with Parkin and even with Salik, making them somewhat 'inflation-proof'.'
Market talk veers to 'dip buying'
In fact, even as the UAE stock markets joined its Saudi and GCC peers in heavy sell-offs immediately after it became clear that Trump was quite serious about his tariff gameplan, investors here were thinking about 'buying the dip'.
'Even when bellwether stocks such as Emaar and banking blue-chips were dropping 5%-10%, these retail investors were looking to pick and choose at the lowest points,' said a day trader. 'There were many homing in on Salik and Parkin those days.'
Some of that is actually turning into trades now.
How's Salik faring?
Since Trump's 'Liberation Day' announcement on tariffs, the Salik share price is down 0.9% at Dh5.04, with yesterday's drop being 0.78%., But it is seen as potentially picking up pace in the coming days, especially with the Q1-2025 financial results season set to start soon.
The Dubai Taxi Co. stock has gained 2.5% during this period.
'There will be a few UAE stocks that could be helped by their Q1 results,' said an analyst. 'But this will all come about amidst the continuing noise of US reciprocal tariffs, although for now, it's confined to China.'
Since April 2, the DFM is down 1.1%, while the ADX dipped 0.9%. That's in comparison to S&P's 9.3% decline, matched by Nasdaq's 9.4% dive.
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