A. SREENIVASA REDDY (ABU DHABI)
UAE stock markets posted strong gains on Wednesday for the second consecutive day as the threat of a renewed war between the US and Iran appeared to be receding.
The ADX General Index (FADGI) rose 0.556% to close at 9,892.31. Trading activity remained robust, with 34,356 trades involving 485 million shares valued at Dh1.625 billion. The total market capitalisation of ADX-listed stocks stood at Dh2.860 trillion.
Almost all blue chips posted gains on Wednesday, with holding companies 2PointZero and Alpha Dhabi rising 3.37% and 2.08%, respectively.
Banking stocks showed a mixed performance. Abu Dhabi Islamic Bank gained 1.22%, while Abu Dhabi Commercial Bank added 1.07%. However, First Abu Dhabi Bank bucked the trend, declining 0.43%.
ADNOC-listed companies mostly advanced, with the exception of ADNOC Gas and Borouge, which fell 0.31% and 0.38%, respectively. ADNOC Logistics and Services rose 1.69%, while ADNOC Drilling gained 1.33%. ADNOC Distribution added 0.53%, while Fertiglobe traded flat at Dh3.1 per share.
NMDC and Presight, the two state-related entities, posted strong gains of 5.44% and 4.17%, respectively.
In Dubai, the Dubai Financial Market (DFM) General Index (DFMGI) surged 2.567% to close at 5,866.31. The session recorded 25,727 trades, with 429 million shares traded for a total value of Dh1.5 billion. Market breadth included 42 gainers, nine decliners, and four unchanged stocks.
Emaar and Emaar Development, the sister real estate companies, led the gains, rising 3.17% and 1.47%, respectively. Emirates NBD posted a gain of 2.53%, adding to the market’s momentum. Air Arabia also contributed to the rally, gaining 6.5%, while Dubai Islamic Bank added 1.9%.
Food delivery app Talabat rose 3.08%, becoming the most traded company in terms of volume. Road toll operator Salik gained 1.75%, while utility major DEWA added 2.21%. Retailer Spinneys declined 2.37%, while district cooling operator Empower fell by more than 1%.
“The diplomatic thaw injected positive momentum across UAE bourses,” Adam Vettese, Market Analyst at eToro, said.
“Sustained progress in talks will be essential to maintain investor confidence and support further upside in energy-sensitive and trade-linked sectors,” Vettese added.
Transportation stocks such as Gulf Navigation and Air Arabia were standout performers on DFM as investors priced in the potential easing of regional shipping and aviation risks linked to Strait of Hormuz uncertainties, Vettese said.
“Solid domestic fundamentals and stronger confidence continued to support the rally, although markets remain vulnerable to any setback in the diplomatic outlook that could trigger fresh short-term volatility,” Joseph Dahrieh, Managing Director at Tickmill, told Reuters.