A. SREENIVASA REDDY (ABU DHABI)
UAE stock markets surged on Monday after several volatile sessions, setting the stage for further gains if broader conditions remain stable.
The Abu Dhabi Securities Exchange (ADX) General Index (FADGI) rose 0.554% to close at 10,639.44. Trading activity remained robust, with 27,005 trades involving 291 million shares valued at Dh1.307 billion. The total market capitalisation of ADX-listed stocks stood at Dh3.190 trillion.
Holding companies Alpha Dhabi and 2PointZero led the ADX rally, rising 2.06% and 1.48%, respectively.
Banking stocks also advanced, with First Abu Dhabi Bank climbing 2.50%, Abu Dhabi Islamic Bank gaining 0.76% and Abu Dhabi Commercial Bank adding 0.39%.
Energy stocks, however, declined amid a somewhat uncertain outlook for the sector. ADNOC Gas fell 0.86% despite being the most traded stock on the ADX. ADNOC Distribution slipped 0.98%, ADNOC Drilling declined 0.58% and ADNOC Logistics and Services lost 0.55%.
Americana Restaurants extended its bull run, gaining 7.73% to reach Dh2.06. Property major Aldar closed flat despite heavy trading volumes.
In Dubai, the Dubai Financial Market (DFM) General Index (DFMGI) jumped 1.826% to close at 6,710.88. The session recorded 18,312 trades, with 197 million shares traded for a total value of Dh1.019 billion. Market breadth showed 31 gainers, nine decliners and 14 unchanged stocks.
Property heavyweights Emaar and Emaar Developments led the DFM rally, rising 3.65% and 2.92%, respectively.
Banking stocks Emirates NBD and Dubai Islamic Bank also contributed to the gains, advancing 2.92% and 3.92%, respectively. Sharjah-based carrier Air Arabia rose more than 1%, consolidating recent gains.
Emirates Central Cooling Systems Corporation (Empower) was among the notable movers, up 2.3% after announcing a contract award for a new district cooling plant in Business Bay, reinforcing confidence in its growth pipeline and long-term expansion strategy.
Food delivery platform Talabat, which has recently faced pressure in the market, gained 1.5%, while road toll operator Salik rose nearly 0.5%.
“UAE equities rebounded strongly, suggesting the recent volatility was more technical than structural,” said Milad Azar, Market Analyst at XTB MENA.
“The ADX gained 0.55% on solid turnover, with holding companies and banks driving sentiment. Strength in First Abu Dhabi Bank signals institutional re-engagement, while Americana’s rally reflects selective risk appetite,” Azar added.
However, he noted that weakness across ADNOC stocks highlights investor caution toward the energy outlook despite healthy liquidity and a Dh3.19 trillion market capitalisation.
Dubai outperformed, with gains in Emaar, Emirates NBD and Dubai Islamic Bank indicating confidence in domestic growth and credit conditions, Azar said.
“Empower’s contract win reinforces infrastructure visibility. Broad market breadth supports momentum, though sustainability will depend on earnings clarity and external stability.”
Offering a different perspective, Adam Vettese, Market Analyst at eToro, said: “UAE equity markets staged a broad-based rally on renewed investor optimism following the US Supreme Court’s decision to overturn key tariffs, a move seen as supportive for global trade flows and risk appetite.”
Increased foreign inflows and bargain hunting were key drivers of the rally, particularly in blue-chip names, Vettese added.
“Overall, the rally underscores improving regional sentiment, as global policy developments provide fresh impetus for Gulf markets,” Vettese said.