A. SREENIVASA REDDY (ABU DHABI)
UAE stock markets staged a strong rally on Wednesday, recovering a substantial part of the recent losses amid signs of easing geopolitical tensions.
The ADX General Index (FADGI) rose 2.670% to close at 9,778.26. Trading activity remained robust, with 42,946 trades involving 444 million shares valued at Dh1.66 billion. The total market capitalisation of ADX-listed stocks stood at Dh2.955 trillion.
Almost all major stocks participated in the rally, which was triggered by positive developments on the geopolitical front.
Among banks, Abu Dhabi Islamic Bank surged 8.52%, while Abu Dhabi Commercial Bank and First Abu Dhabi Bank recorded gains of over 7% each.
Real estate major Aldar rose more than 6%, while holding companies Alpha Dhabi and 2PointZero gained 0.84% and 0.49%, respectively. 2PointZero’s gains were relatively muted after it had surged more than 5% in Tuesday’s session.
Among ADNOC-listed companies, ADNOC Logistics & Services led the rally with a gain of 4.21%, followed by ADNOC Drilling, which rose 3.56%. ADNOC Gas gained 1.54% and ADNOC Distribution rose 1.06%. Borouge was up 1.56%, while Fertiglobe declined 1.96%, making it the only ADNOC stock to close in negative territory on Wednesday.
State utility TAQA rose nearly 7%, while healthcare major PureHealth rallied close to 8%.
In Dubai, the Dubai Financial Market (DFM) General Index (DFMGI) climbed 4.146% to close at 5,697.71. The session recorded 32,905 trades, with 324 million shares traded for a total value of Dh1.53 billion. Market breadth showed 40 gainers, 11 decliners and four unchanged stocks.
Real estate giants Emaar and Emaar Development led the rally with gains of 7.6% and 3.6%, respectively. Banking majors Emirates NBD and Dubai Islamic Bank supported the upward trend, rising 6.76% and 4.37%. Commercial Bank of Dubai advanced more than 9%.
Air Arabia gained 5.14% on expectations of a possible reopening of airspace for normal traffic. Food delivery platform Talabat recovered some of its losses, rising over 6%.
Spinneys was among the notable decliners, falling more than 3.5%.
“UAE equity markets extended Tuesday’s gains as reports of a proposed 15-point ceasefire plan by the US lifted risk sentiment across the Gulf,” said Adam Vettese, Market Analyst at eToro.
“Property and financial names once again dominated the risers. ADNOC-linked companies also traded firmly in positive territory, affirming the energy sector's resilience,” Vettese added.
Echoing Vettese’s views, Milad Azar, Market Analyst at XTB MENA, said: “UAE equities rebounded sharply, reflecting a swift repricing of geopolitical risk as easing tensions restored investor confidence.”
“The broad-based rally signals renewed appetite for high-beta sectors, while strong trading volumes and market breadth underscore institutional participation and improving liquidity conditions,” Azar said.
Highlighting sectoral trends, Azar noted resilience in energy and utilities, adding: “Dubai’s outperformance suggests a catch-up trade, supported by real estate and financials.”
However, Azar sounded a note of caution: “The sustainability of gains will depend on continued geopolitical de-escalation and confirmation through earnings strength.”