A. SREENIVASA REDDY (ABU DHABI)

The UAE stock markets managed to weather a big storm that struck global markets in August, with both the Abu Dhabi Securities Exchange (ADX) and the Dubai Financial Market (DFM) reporting robust trading activity and strong year-to-date performance, according to Kamco Invest monthly data. 

Despite registering modest declines in their benchmark indices, the two bourses continued to attract investor interest, underpinned by steady valuations, high levels of liquidity and notable sectoral and stock-level outperformance. The combined market capitalisation of all listed stocks at the ADX and DFM stood at Dh4.1 trillion, according to the Kamco Invest tabulation. 

The FTSE ADX General Index ended August at 10,094.7 points, reflecting a monthly fall of 2.7%. Even with this correction, the benchmark preserved a healthy 7.2% gain since the start of the year, underlining Abu Dhabi’s resilience in a volatile global backdrop.

Market fundamentals remained encouraging. ADX’s market capitalisation stood at Dh3.03 trillion, while the bourse’s trailing price-to-earnings ratio was 21.1 and the price-to-book ratio 2.6. The dividend yield for investors remained attractive at 2.3%. These indicators highlight Abu Dhabi’s depth as a market that continues to provide a blend of growth and income opportunities.

Trading volumes reflected the strength of investor participation. A total of 5.2 billion shares were exchanged in August, with deals worth Dh21.0 billion. The most actively traded stock by volume was ADNOC Gas with 0.68 billion shares, followed by Multiply Group with 0.6 billion shares and Eshraq Investments at 0.57 billion shares.

In terms of value traded, International Holding Company dominated the charts with Dh2.8 billion, while Aldar Properties and ADNOC Gas each recorded trades of Dh2 billion and Dh1.9 billion, respectively.

Stock performance during the month produced striking winners. ARAM Group led the way, surging by 101.3%, followed by Umm Al Qaiwain General Investments Co. and Gulf Cement Co., which advanced by 33.9% and 28.8%, respectively. Real estate equities contributed positively, with the sector rising 1.4% in August — the only major sector to close the month in the green. On the decliners’ side, Commercial Bank International shed 22.0%, followed by ADC Acquisition and Al Wathba National Insurance with declines of 18.8% and 11.8%.

The combination of heavyweight sector resilience and outsized gains in select mid-cap stocks ensured that investor sentiment in Abu Dhabi remained broadly supportive, despite the index pullback.

The DFM General Index closed August at 6,063.6 points, down 1.6% from July. Nevertheless, the Dubai market retained its position as the GCC’s best performer this year, with a robust 17.5% year-to-date increase.

Dubai’s market indicators remain solid. The exchange ended the month with a market capitalisation of Dh1.08 trillion. Valuations were supportive, with a P/E ratio of 11.2 and a P/B ratio of 1.8, while dividend yields stood at a healthy 4.6%.

A total of 4.8 billion shares were traded during the month on DFM, with overall transaction values reaching Dh12.1 billion. Sectoral activity was evenly balanced, with four indices advancing and four retreating. Communications Services delivered the strongest performance, gaining 4.5%, followed closely by the Materials Index which rose 3.9%.

Among individual companies, Takaful Emarat Insurance stood out with a 21.0% jump in its share price, while Gulf Navigation Holding gained 20.5% and Oman Insurance rose 20.1%. On the flip side, Naeem Holding for Investment slipped 11.8%, while United Foods and Talabat Holding shed 9.5% and 6.3%, respectively.

The market’s heavyweight names remained at the centre of trading interest. Emaar Properties was the most heavily traded by value at Dh3 billion, followed by Dubai Islamic Bank with Dh1.3 billion and Emirates NBD with Dh0.9 billion. Talabat dominated the volume chart with 0.7 billion shares traded, ahead of Drake & Scull International and Shuaa Capital.

Beyond the stock market, Dubai’s wider economy lent further support to investor confidence. Real estate sales during the first eight months of 2025 surged 33.7% year-on-year to Dh441.2 billion, with the number of transactions rising by 21.5% to 137,013 deals. This reinforced the positive role of property and construction activity in driving financial flows through the capital markets.

The broader Gulf region showed a mixed picture. The MSCI GCC index fell 2.3% in August, reflecting weakness in heavyweight Saudi Arabia, which declined 2.0%, and Kuwait, down 1.4%. Qatar eased 0.3% and Bahrain lost 1.4%. Oman, however, stood out as the region’s bright spot, with its MSX 30 index climbing 5.2% for the month.

Despite the mixed trends, sectoral highlights across the GCC included a 4.3% rise in the Materials sector, supported by strong performances from Saudi Arabia’s SABIC, Advanced Petrochemicals and YANSAB, alongside Kuwait’s basic materials companies.