A. SREENIVASA REDDY (ABU DHABI)
UAE stock markets saw a strong rebound on Tuesday after de-escalation in the regional situation, with both Abu Dhabi and Dubai bourses regaining most of the losses recorded over the previous two sessions.
The ADX General Index (FADGI) rose 0.817% to close at 9,561.41. Trading activity remained robust, with 24,876 trades involving 342 million shares valued at Dh1.14 billion. The total market capitalisation of ADX-listed stocks stood at Dh2.792 trillion.
Banking stocks did not fully embrace the broader market trend, with Abu Dhabi Commercial Bank losing 0.15%. Abu Dhabi Islamic Bank remained unchanged at Dh18.80, while First Abu Dhabi Bank gained 1.83%.
ADNOC-linked stocks showed signs of a rebound, with ADNOC Gas, one of the highly liquid and most traded stocks, gaining 0.92%. ADNOC Distribution rose 2.18%, while ADNOC Drilling added 2.32%. ADNOC Logistics and Services gained 0.70%, and Borouge advanced 0.4%. Fertiglobe was the lone stock in the group to decline, dropping 1.67%.
Among holding companies, 2PointZero added 3.9%, while Alpha Dhabi gained 1.25%.
Real estate giant Aldar registered a modest gain of 0.27%, reflecting relatively weak sentiment on the property front.
Space42 and EMSTEEL, the two state-related entities, recorded gains of more than 3.5%. Space42 announced the launch of three new satellites, bolstering its capabilities.
In Dubai, the Dubai Financial Market (DFM) General Index (DFMGI) rose 0.879% to close at 5,785.34. The session recorded 15,143 trades, with 247 million shares changing hands for a total value of Dh695 million. Market breadth remained positive, with 37 gainers, nine decliners and seven stocks unchanged.
Real estate heavyweights Emaar and Emaar Development, key index drivers, moved in opposite directions. Emaar lost 0.18%, while Emaar Development gained 1.97%.
Emirates NBD gained 1.96%, while Dubai Islamic Bank lost 0.14%.
Road toll operator Salik rose 1.42%. Sharjah-based carrier Air Arabia gained 0.86%, while DEWA advanced 1.93%. Telecom giant du posted a modest fall of 0.34%.
Food delivery app Talabat, which had been subdued for a few days, gained 3.23%. Parking operator Parkin rose nearly 4%, reflecting a strong rally among direct consumer-facing companies.
“The sharp rebound across UAE equities suggests investors were quick to reprice geopolitical risk once tensions eased, highlighting how much of the recent weakness was driven by sentiment rather than fundamentals,” said Milad Azar, Market Analyst at XTB MENA.
Azar said the recovery was broad enough to restore confidence, while strength in industrial, infrastructure and logistics-related names pointed to continued expectations of resilient domestic economic activity.
Looking ahead, the sustainability of the rebound is likely to depend less on regional headlines and more on global macro signals, he added.
“Investors appear increasingly focused on whether easing inflationary pressures can support a more accommodative monetary backdrop, which would be particularly supportive for liquidity-sensitive sectors and help extend the market’s recovery momentum,” Azar said.
“Sentiment improved on reports of a pause in hostilities and progress toward a ceasefire, though traders remained cautious,” said another market analyst Nagham Hassan of eToro.
“UAE investors will now watch Wednesday's US CPI release closely. A hotter-than-expected print could strengthen the dollar further and test the durability of today's gains,” Hassan said.