A. SREENIVASA REDDY (ABU DHABI)
UAE stock markets eased on Monday after posting strong gains in recent weeks, as investors remained cautious ahead of US-Iran talks.
The Abu Dhabi Securities Exchange (ADX) General Index (FADGI) declined 0.122% to close at 10,623.48. Trading activity remained robust, with 21,557 trades involving 302 million shares valued at Dh996 million.
The total market capitalisation of ADX-listed stocks stood at Dh3.215 trillion.
Real estate major Aldar extended its positive run, rising 1.24%, while Alpha Dhabi gained 2.49%. Holding company 2PointZero Group fell 3.18%.
Among banking stocks, Abu Dhabi Islamic Bank gained 0.23%, Abu Dhabi Commercial Bank slipped 0.38%, and First Abu Dhabi Bank declined 0.60%.
In the energy segment, ADNOC Logistics and Services dropped 2.65%, ADNOC Gas fell nearly 1%, and ADNOC Drilling lost 1.70%. ADNOC Distribution bucked the trend, edging up 0.24%.
Retailer Lulu declined nearly 1%, as its annual results appeared to have fallen short of investor expectations.
In Dubai, the Dubai Financial Market (DFM) General Index (DFMGI) fell 0.417% to close at 6,702.03. The session saw 16,635 trades, with 353 million shares traded for a total value of Dh729 million. Market breadth indicated 20 gainers, 24 decliners and 14 unchanged stocks.
Property heavyweights Emaar and Emaar Developments weighed on the index, declining 1.21% and 1.30%, respectively. Emirates NBD bucked the overall trend, rising 2.8%, while Dubai Islamic Bank fell 1.21%. Sharjah-based carrier Air Arabia gained nearly 1%.
Food delivery platform Talabat dropped nearly 9% following its fourth-quarter and full-year results, which showed a decline in Q4 net income, although the company said performance met its guidance. The stock has also been facing stiff competition from other delivery platforms.
Other notable decliners included Al Mal Capital REIT, which fell 7.34%, and retailer Spinneys, down 3.7%.
Investors adopted a cautious stance ahead of the second round of US-Iran talks, a key geopolitical catalyst for regional risk sentiment, Adam Vettese, market analyst at eToro, said: “Oil prices remained largely flat, reflecting mixed views on potential supply and geopolitical outcomes.”
Analysing individual stock performance, Vettese said Emaar pulled back about 1.5%, “trimming last Friday’s post-earnings gains as traders weighed near-term macro risks against company-specific performance”.
“Overall, markets are in a risk-off mode, with earnings news providing some support but geopolitical uncertainty dominating trading dynamics,” Vettese said in his closing remarks on Monday’s trading.
Echoing this view, Milad Azar, Market Analyst at XTB MENA, said: “UAE equities paused after recent gains, reflecting investor caution ahead of anticipated US-Iran developments.”
Striking an optimistic note, Azar added: “Despite modest index declines, trading volumes remained healthy, signalling underlying liquidity.”
Sector performance was mixed, with selective strength in real estate and banking offset by weakness in energy and consumer names, Azar said.
Extending his analysis further, Azar said: “Earnings-driven volatility, particularly in retail and tech-linked stocks, highlights growing market sensitivity to guidance and competitive pressures rather than broad macro deterioration.”