In-Depth Financial Analysis of Dubai Electricity & Water Authority PJSC (DEWA)

Company Profile:

The Dubai Electricity and Water Authority was created in 1992 as a result of the merger of the Dubai Electricity Company (“DEC”) and the Dubai Water Department (“DWD”), which were each established in 1959 by H.H. Sheikh Rashid bin Saeed Al Maktoum, the then Ruler of Dubai. Since then, the Group has been the exclusive provider of electricity and potable water in Dubai and its business has grown along with Dubai’s expanding economy, population and infrastructure.

On 30 December 2021 pursuant to Law No. (27) of 2021 (which repealed Ruler of Dubai Law No. (1) of 1992), the Company was established in its current form, as a public joint stock company, to succeed to the Dubai Water and Electricity Authority. Company's Activities are detailed in AOA and Listing Prospectus.

Trend Analysis

Analyzing the price data from January 2023 to September 2024, DEWA's stock has shown a fluctuating trend. The highest price recorded was on 2023-10-06 at 2.56, while the lowest price was on 2024-06-28 at 2.20. Overall, the stock has experienced periods of both upward and downward trends, reflecting market sentiment and external factors.

Technical Analysis

Technical indicators such as moving averages and relative strength index (RSI) provide insights into DEWA's stock performance. The moving averages indicate a consolidation phase with occasional bullish and bearish crossovers. The RSI remains within a neutral range, suggesting neither overbought nor oversold conditions.

Support and Resistance Analysis

Identifying key support and resistance levels is crucial for understanding potential price movements. The primary support level is around 2.40, while the resistance level is at 2.60. These levels have been tested multiple times, indicating strong market interest and potential reversal points.

Volatility Analysis

Volatility analysis reveals that DEWA's stock has experienced moderate volatility over the analyzed period. The average daily price change is relatively stable, with occasional spikes during significant market events. This stability is beneficial for investors seeking lower-risk investments.

Pattern Recognition

Pattern recognition techniques identify recurring price patterns, such as head and shoulders, double tops, and triangles. DEWA's stock has exhibited several bullish patterns, indicating potential upward movements. However, it's essential to consider these patterns in conjunction with other analyses for accurate predictions.

Conclusion

In conclusion, DEWA's stock has shown a mix of stable and fluctuating trends, with identifiable support and resistance levels. Technical indicators and pattern recognition suggest potential bullish movements, while volatility remains moderate. Investors should consider these insights when making investment decisions in DEWA.