A. SREENIVASA REDDY (ABU DHABI)

UAE stock markets rebounded emphatically, with both Abu Dhabi and Dubai indices posting strong gains amid hopes of improvement in the geopolitical environment.

The ADX General Index (FADGI) rose 0.855% to close at 9,874.76. Trading activity remained robust, with 41,509 trades involving 559 million shares valued at Dh2.01 billion. The total market capitalisation of ADX-listed stocks stood at Dh2.875 trillion.

Most of the blue-chip stocks posted gains on ADX, led by banking stocks. Abu Dhabi Islamic Bank added 2.5%, while Abu Dhabi Commercial Bank gained over 1%. First Abu Dhabi Bank rose 1.84%.

Almost all ADNOC stocks advanced, with ADNOC Logistics and Services gaining 2.21%. ADNOC Gas added 2.1%, while ADNOC Drilling rose 1.62%. ADNOC Distribution gained 1.86%, while Borouge added 1.2%. Fertiglobe bucked the trend, dropping 4.79% to Dh3.38.

Holding company 2PointZero gained 3.4%, while Alpha Dhabi added 2.45%.

Real estate major Aldar made a strong comeback, rising nearly 3%.

In Dubai, the Dubai Financial Market (DFM) General Index (DFMGI) surged 2.956% to close at 5,898.42. The session recorded 23,799 trades, with 421 million shares changing hands for a total value of Dh1.06 billion. Market breadth remained positive, with 43 gainers, seven decliners, and four stocks unchanged.

Real estate giants Emaar and Emaar Development recorded strong gains, with share prices rising by more than 4%.

Emirates NBD gained 3.48%, while Dubai Islamic Bank added 2.1%.

Sharjah-based carrier Air Arabia rose 6.19%, while road toll operator Salik gained 4%. Utility major DEWA added 1.11%. Food delivery app Talabat rose nearly 3%, while Alec Holdings gained 7.14%.

“UAE equity markets advanced as investor sentiment improved on rising hopes of de-escalation in the region,” said Adam Vettese, Market Analyst at eToro.

ADNOC-linked companies led the rally on optimism surrounding the possible reopening of the Strait of Hormuz, which is expected to ease supply concerns and support smoother energy exports, Vettese said.

“The rebound reflects a shift toward risk-on trading, with buying interest seen in energy, industrials and financials,” Vettese noted.

“Markets are expected to remain sensitive to any fresh diplomatic updates, but the underlying tone is now cautiously constructive,” he added.