A. SREENIVASA REDDY (ABU DHABI)
UAE stock markets remained subdued and closed in negative territory on Wednesday amid a prolonged stalemate at the Strait of Hormuz.
The ADX General Index (FADGI) fell 0.764% to close at 9,785.78. Trading activity remained robust, with 25,184 trades involving 519 million shares valued at Dh1.757 billion. One bulk trade involving National Bank of Fujairah, valued at Dh642 million, was executed at a price of Dh3.3 per share. The total market capitalisation of ADX-listed stocks stood at Dh2.812 trillion.
Holding companies 2PointZero and Alpha Dhabi reported losses of 4.65% and 1.35%, respectively.
Banking stocks followed the broader market trend. Abu Dhabi Commercial Bank fell 2.88%, while Abu Dhabi Islamic Bank declined 2.6%. First Abu Dhabi Bank also slipped 2.6%.
Among ADNOC-linked companies, Fertiglobe stood out with a gain of 1.94%. All other ADNOC stocks remained subdued, with ADNOC Distribution falling 1.87%. ADNOC Logistics and Services declined 1.31%, while ADNOC Gas dropped 1.56%. ADNOC Drilling lost 0.38%, and Borouge traded flat at Dh2.54 per share.
Abu Dhabi National Insurance (ADNIC) was another standout performer, rising nearly 5%.
In Dubai, the Dubai Financial Market (DFM) General Index (DFMGI) fell 1.059% to close at 5,816.03. The session recorded 17,622 trades, with 257 million shares changing hands for a total value of Dh832 million. Market breadth remained negative, with 13 gainers, 33 decliners, and five stocks unchanged.
Emaar and Emaar Development, the sister real estate companies, declined 2.21% and 1.3%, respectively, while Deyaar fell 3.78%.
Emirates NBD lost 1.79%, and Dubai Islamic Bank declined 0.55%. Air Arabia fell 1.72%.
Road toll operator Salik slipped more than 1%, while utility major DEWA declined 1.84%.
“Investor sentiment remained cautious as developments linked to Iran-Israel-US dynamics kept risk appetite subdued,” said Adam Vettese, Market Analyst at eToro.
Heavyweight property and financial stocks weighed on overall performance, exerting downward pressure on the benchmarks.
Oil prices remained volatile, with Brent oscillating close to the $100 per barrel level as uncertainty persisted in global energy markets due to the evolving geopolitical situation, Vettese said.
“Investor sentiment is likely to remain cautious in the short term. Clarity on ceasefire durability and stabilisation in commodity prices will be key for any meaningful recovery,” he added.