A. SREENIVASA REDDY (ABU DHABI)
International Holding Company (IHC) helped stem the fall of the main index at the Abu Dhabi Securities Exchange (ADX), even as realty and banking stocks bore the brunt of the sell-off following geopolitical developments in the region.
The ADX General Index (FADGI) edged down 0.411% to close at 9,862.61, falling below the 10,000 mark after several days of volatile trading. Trading activity remained robust, with 24,407 trades involving 284 million shares valued at Dh1.17 billion. The total market capitalisation of ADX-listed stocks stood at Dh2.948 trillion.
IHC rose 2.4% and First Abu Dhabi Bank gained 0.33%, helping limit losses for the ADX, which otherwise could have seen a sharper fall in the main index.
Holding companies 2PointZero and Alpha Dhabi fell 4.87% and 4.17%, respectively, reflecting the prevailing mood in the market. Abu Dhabi Commercial Bank and Abu Dhabi Islamic Bank both almost hit the maximum ceiling of a 5% decline.
Among energy stocks, ADNOC Drilling fell 4.86%, ADNOC Logistics and Services slipped 2.89%, ADNOC Distribution lost 1.79%, while ADNOC Gas escaped with a minor loss of 0.61%. Fertiglobe stood out as the lone gainer among ADNOC stocks with a 1.73% rise, while Borouge lost 1.16%.
Home-grown crypto miner Phoenix Group gained 2.29% after its recent lacklustre performance in the market, as the company is considering a change in business strategy.
In Dubai, the Dubai Financial Market (DFM) General Index (DFMGI) fell 2.766% to close at 5,753.55. The session recorded 18,269 trades, with 227 million shares traded for a total value of Dh711 million. Market breadth showed nine gainers, 44 decliners and four unchanged stocks.
Most blue chips came close to the maximum permitted fall of nearly 5%. Emirates NBD and telecom giant du managed to limit losses to 1.53% and 1.95%, respectively. Talabat bucked the trend to gain 3.73%, while DEWA stayed afloat with a gain of 0.7%.
Geopolitical tensions weighed heavily on UAE equities, pushing the ADX General Index below the psychological 10,000 level, Milad Azar, Market Analyst at XTB MENA, said.
“Despite broad-based selling in banking and real estate, selective strength in large-cap names helped cushion the decline, indicating that institutional investors remain active while sentiment is temporarily risk-averse,” Azar said.
The resilience of IHC and modest gains in FAB limited deeper losses, though weakness in Alpha Dhabi and 2PointZero reflected cautious positioning, Azar added.
“In Dubai, declines were sharper as blue chips corrected, though pockets of strength in Talabat and DEWA suggest investors are selectively rotating into defensive or growth-linked names,” Azar added.
Echoing the views of Azar, Adam Vettese, Market Analyst at eToro, said: “UAE equity markets extended losses as regional geopolitical tensions continued to weigh on investor sentiment. Dubai’s index fell 2.8%, significantly underperforming Abu Dhabi, which showed relative resilience with a 0.4% decline.”
“Selling pressure intensified across key names, with several stocks hitting the 5% daily limit down, including Aldar Properties and Dubai Islamic Bank, reflecting stress in the real estate and financial sectors,” Vettese said.
Healthcare stocks stood out as one of the few bright spots, attracting defensive flows, Vettese said.
“Overall, caution prevails as investors reassess regional risk exposure and await greater geopolitical clarity,” Vettese added.