A. SREENIVASA REDDY (ABU DHABI)
UAE stock markets traded in negative territory on Monday as US-Iran talks failed to make a breakthrough, with the Abu Dhabi market remaining relatively more resilient than the Dubai market.
The ADX General Index (FADGI) declined 0.536% to close at 9,785.62. Trading activity remained robust, with 21,524 trades involving 278 million shares valued at Dh1.016 billion. The total market capitalisation of ADX-listed stocks stood at Dh2.820 trillion.
Almost all blue chips declined on the first day of the week, with Fertiglobe being the lone exception. Banking stocks followed the broader market trend, with Abu Dhabi Commercial Bank falling 2.26%. First Abu Dhabi Bank lost 1.29%, while Abu Dhabi Islamic Bank slipped 0.53%.
Real estate major Aldar traded flat amid selling pressure, indicating investor confidence. Holding company 2PointZero declined 3.43%, while Alpha Dhabi traded flat at Dh2.04.
ADNOC-listed companies showed a mixed performance. Fertiglobe gained 2.31%, while ADNOC Drilling rose 0.19%. ADNOC Logistics and Services declined 1.31%, ADNOC Gas slipped 1.22%, ADNOC Distribution fell 0.26%, and Borouge declined 0.38%.
In Dubai, the Dubai Financial Market (DFM) General Index (DFMGI) fell 0.826% to close at 5,668.26. The session recorded 16,700 trades, with 137 million shares traded for a total value of Dh733 million.
Market breadth included 13 gainers, 32 decliners and seven unchanged stocks. Almost all key index stocks traded in negative territory, except Emaar Development, which gained nearly 1%. Emaar fell 1.68%, while Emirates NBD declined 2.48%, dragging down the index. Dubai Islamic Bank lost 1.73%.
Utility major DEWA declined 0.36%, while road toll operator Salik fell 0.54%. Sharjah-based carrier Air Arabia dropped 3.52% amid fears of further travel disruptions.
“Threats of a US naval blockade in the Strait of Hormuz sent oil prices sharply higher, with investors once again pricing in a meaningful risk premium and fuelling broad risk aversion,” said Adam Vettese, Market Analyst at eToro.
With oil volatility elevated and the regional outlook fluid, investors will continue to monitor geopolitical developments closely, Vettese added. “Any meaningful progress toward de-escalation could quickly ease pressure on local equities, while renewed friction would keep the risk premium elevated,” he said.
UAE equities came under modest pressure amid the evolving backdrop, said Milad Azar, Market Analyst at XTB MENA. “Although geopolitical risks continue to weigh on sentiment, the recent easing in tensions may support near-term consolidation,” Azar added.