A. SREENIVASA REDDY (ABU DHABI)
UAE stock markets staged a strong recovery on Tuesday amid hopes for a resolution to regional developments.
The ADX General Index (FADGI) rose 0.991% to close at 9,556.14. Trading activity remained robust, with 41,821 trades involving 405 million shares valued at Dh1.66 billion. The total market capitalisation of ADX-listed stocks stood at Dh2.884 trillion.
Most blue-chip stocks on ADX posted strong gains after several consecutive days of losses. Among banking stocks, Abu Dhabi Islamic Bank and First Abu Dhabi Bank recorded gains of 3.02% and 2.29%, respectively, while Abu Dhabi Commercial Bank declined 2.22%.
Holding companies 2PointZero Group and Alpha Dhabi made a strong comeback, rising 8.49% and 4.78%, respectively. Real estate major Aldar also rebounded, gaining 6.01%.
All ADNOC companies traded in positive territory. ADNOC Drilling gained 1.02%, while ADNOC Gas was up nearly 0.62%. ADNOC Distribution rose 4.23%, while ADNOC Logistics and Services gained 3.85%. Fertiglobe increased 1.72% and Borouge added 1.21%.
In Dubai, the Dubai Financial Market (DFM) General Index (DFMGI) posted a strong gain of 4.103% to close at 5,505.68. The session recorded 35,506 trades, with 306 million shares traded for a total value of Dh1.56 billion. Market breadth showed 35 gainers, seven decliners and 10 unchanged stocks. Real estate giants Emaar and Emaar Development led the rally, each gaining over 7%.
Banking major Emirates NBD and Dubai Islamic Bank rose 4.91% and 5.15%, respectively, recovering a significant portion of their recent losses. Telecom operator du and Sharjah-based carrier Air Arabia gained 4.83% and 4.65%, respectively. Road toll operator Salik rose 3.85%.
“The rally was driven by bargain hunting in oversold stocks and investors capturing dividends right before the ex-dividend dates ahead of the Eid Al-Fitr holiday,” said Adam Vettese, Market Analyst at eToro.
Surging oil prices above $103 per barrel provided major support and lifted sentiment across energy-linked names, he added.
“The strong rebound underscores investor confidence in UAE fundamentals and attractive valuations despite geopolitical tensions,” Vettese added.