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Wednesday, April 22, 2026

Profit & Yield - The U.A.E.'s Dual Return Play

تم إعداد هذا المنشور من قبل سنشري للاستشارات

Profit & Yield - The U.A.E.'s Dual Return Play
Profit & Yield - The U.A.E.'s Dual Return Play

Top UAE Picks

Emaar Properties PJSC
AEE000301011
Real Estate
Discount from
pre-war level
-23.6%
AED 10.15 AED 12.38 AED 17.25
Div. indicated yield (net) 8.55%
β 1.87
Mkt cap AED 109.4B
Abu Dhabi Commercial Bank
AEA000201011
Banks
Discount from
pre-war level
-13.1%
AED 10.02 AED 13.18 AED 16.54
Div. indicated yield (net) 4.85%
β 2.15
Mkt cap AED 104.3B
Abu Dhabi Islamic Bank
AEA000801018
Banks
Discount from
pre-war level
-9.5%
AED 16.16 AED 23.08 AED 27.96
Div. indicated yield (net) 4.29%
β 2.09
Mkt cap AED 83.8B
Alpha Dhabi Holding PJSC
AEA007601015
Industrial Conglomerates
Discount from
pre-war level
-19.4%
AED 6.75 AED 7.35 AED 12.74
Div. indicated yield (net) 2.88%
β 1.39
Mkt cap AED 73.5B
Aldar Properties PJSC
AEA000201013
Real Estate
Discount from
pre-war level
-21.8%
AED 7.03 AED 8.45 AED 11.80
Div. indicated yield (net) 2.53%
β 2.68
Mkt cap AED 66.4B
Salik Co PJSC
AEE011105227
Transportation Infra
Discount from
pre-war level
-9.4%
AED 4.96 AED 5.80 AED 6.96
Div. indicated yield (net) 4.01%
β 1.04
Mkt cap AED 43.5B
Air Arabia PJSC
AEA003001012
Passenger Airlines
Discount from
pre-war level
-6.1%
AED 3.05 AED 5.08 AED 5.66
Div. indicated yield (net) 6.45%
β 1.33
Mkt cap AED 23.7B
Presight AI Holding PLC
AEE01200P230
IT Services
Discount from
pre-war level
-10.2%
AED 1.83 AED 3.25 AED 4.10
Div. indicated yield (net) —
β 2.04
Mkt cap AED 18.2B
Parkin Co PJSC
AEE01370P249
Commercial Services
Discount from
pre-war level
-10.7%
AED 4.38 AED 5.26 AED 6.79
Div. indicated yield (net) 4.37%
β 1.29
Mkt cap AED 15.8B
Dubai Financial Market
AED000901010
Capital Markets
Discount from
pre-war level
-8.7%
AED 1.31 AED 1.47 AED 1.84
Div. indicated yield (net) 4.51%
β 1.16
Mkt cap AED 11.8B
Source: Bloomberg
Last Price: 15th April 2026

Valuations across the software space have meaningfully reset. The index is currently trading at 29.1x LTM P/E, down from a 2-year average of 40.0x, alongside similar compression across other metrics — P/BV at 7.5x vs 10.9x, P/CF at 19.3x vs 27.8x, and P/S at 8.9x vs 11.9x. Taken together, this suggests a clear de-rating over the past two years. While fundamentals across many companies have remained resilient, multiples have adjusted lower, bringing the sector to levels that now screen undervalued relative to its recent history.

iShares Expanded Tech-Software Sector ETF (IGV)

The iShares Expanded Tech-Software Sector ETF (IGV) is one of the best pure-play instruments for the Software industry within the tech sector. Around 60% of the holdings account for Application software, while 36.5% of the holdings account for Systems software, meaning there is essentially no semiconductor or hardware exposure. This is clearly evident in the top holdings, with stocks like Oracle, Microsoft, Palantir, and Salesforce each carrying a roughly 7% to 9% weight in the ETF, totalling about 32.76% of the ETF. Top cybersecurity names such as Palo Alto Networks and CrowdStrike, along with cloud infrastructure players such as ServiceNow, are also among the top 10 holdings.

From its peak at $117.79 in September 2025, IGV has fallen by around 33.19% to $78.70, while the SPX Index has gained around 3% for the same period, highlighting the significant fall within the software sector. The narrative shifted with a big jump in the IGV on Monday, 13th April. After briefly falling below a support zone marked by the lows of 2024’s January, May, and August, 2025’s April, and 2026’s February and March, the price has successfully completed a bear trap and recaptured the support. This kind of reversal around such zones could be considered a strong bullish signal as per technical analysis. That matters because it could mean a broader tech rally is at play, not just chip stocks leading the gains. IGV first breached the $80 level back in 2021, giving an opportunity to enter at such levels 5 years later.

IGV Price Chart Support zone recaptured after bear trap

On top of that, the chart shown below shows that the trailing 12-month Price-to-Sales ratio for the S&P North American Expanded Technology Software Index (which IGV seeks to track) currently sits at around 6.92, indicating much better valuations compared to the 5-year high of around 12.93, and just slightly above the 2022 low of around 6.24.

LTM Price-to-Sales Ratio — S&P North American Expanded Tech Software Index

5-year view · Current: 6.92x · 5-yr High: 12.93x · 2022 Low: 6.24x · Source: Bloomberg

Individual Stock Analysis

Risks and Assumptions related to Back-tested trading strategies
The risks and assumptions listed here are not intended to be an exhaustive summary of all the risks and assumptions involved.
The strategy might suffer from look-ahead bias which occurs due to the use of information or data in a study or simulation that would not have been known or available during the period being analyzed. This can lead to inaccurate results in the study or simulation.
Future price movements may not be exactly the same as the historical price movements and this could lead to variation in performance.
Testing can sometimes lead to over-optimization. This is a condition where performance results are tuned so high to the past they are no longer as accurate in the future.
The model assumes no slippages in trading. Slippage refers to the difference between the expected price of a trade and the price at which the trade is actually executed.
The back-tested strategy might be at risk of data dredging, which is the behavior of testing multiple hypotheses at one time, resulting in picking the data that best supports your main hypothesis.
Drawdowns in actual trading can be higher than the tested system and losses could be significant in the event of leverage.
Unforeseen events can lead to variation in performance from the tested trading strategy.
The tested result has been computed with price feeds available from Bloomberg.
The testing environment has not considered transaction or any other costs.
Trading indicators used for the purpose of testing has been provided by Bloomberg.
The strategy might suffer from data mining fallacy, selection bias and backfill bias.
A trading strategy that performs well on multiple datasets from one market (e.g., forex) might not perform as well in another market (e.g., stocks).
The strategy may not depict accuracy in terms of spread changes due to the spread-widening events.

Disclaimer: Century Financial Consultancy LLC (CFC) is licensed and regulated by the Capital Market Authority (CMA) of the UAE under license numbers 20200000028 and 301044 to carry out the activities of Financial Products dealer, Trading Broker in international markets, Trading Broker of OTC derivatives and currencies in the spot market, Introduction, Financial Consultations, and Promotion. CFC is incorporated under UAE law, registered with the Dubai Economic Department (No. 768189), with its office at 601, Level 6, Building No. 4, Emaar Square, Downtown Dubai, UAE, PO Box 65777.

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