A. SREENIVASA REDDY (ABU DHABI)
UAE stock markets regained momentum on Thursday as the US-Iran peace deal lifted sentiment across the region.
The ADX General Index (FADGI) rose 1.173% to close at 10,113.48. Trading activity remained strong, with 48,160 trades involving 770 million shares valued at Dh2.623 billion. The total market capitalisation of ADX-listed stocks stood at Dh2.958 trillion. One bulk transaction worth Dh74.4 million involving Lulu Retail shares was reported by ADX.
Realty leader Aldar and telecom giant e& were at the forefront of the rally, rising 6% and 3.3%, respectively.
Banking stocks also put up a good show, with the exception of Abu Dhabi Commercial Bank, which dropped 1.19%. First Abu Dhabi Bank advanced 3.48%, while Abu Dhabi Islamic Bank added 1.19%.
Holding company 2PointZero rose 2.26% to reach Dh2.26, while Alpha Dhabi added 1.35%, reflecting cross-sector optimism.
ADNOC-linked stocks posted a positive performance. ADNOC Distribution added 1.26%, while ADNOC Logistics and Services gained 0.99%. ADNOC Gas added 1.15%, while ADNOC Drilling gained 0.16%. Fertiglobe rose nearly 3%, or 2.95%, while Borouge added 1.17%.
RAK Properties rose 9.62%, underlining confidence in the real estate market, while retail giant Lulu gained 2.7%.
In Dubai, the Dubai Financial Market General Index (DFMGI) rose 2.51% to close at 6,269.51. The session recorded 25,916 trades, with 452 million shares changing hands for a total value of Dh1.72 billion. Market breadth remained positive, with 32 gainers, 14 decliners and eight stocks unchanged.
Real estate heavyweights Emaar and Emaar Development rose 2.36% and 2.56%, respectively, driving the rally in the main index.
Emirates NBD gained a massive 7.21% after it finalised the acquisition of a 60% stake in India’s RBL Bank at a cost of nearly $2.75 billion. Dubai Islamic Bank added 2.57%.
Road toll operator Salik gained 2.52%. Sharjah-based carrier Air Arabia advanced 5.94% as travel is expected to rebound in the Gulf region. DEWA gained 1.44%. Free zone company TECOM rose a big 7.29%.
“Sentiment was firmly bullish and the peace deal was the dominant driver, supporting broad participation across sectors,” said Nagham Hassan, Market Analyst at eToro.
Looking ahead, investors will be watching the pace of the deal’s implementation, particularly the reopening of key shipping lanes, Hassan said.
“The strong rebound across both Abu Dhabi and Dubai markets highlights how quickly investor confidence can recover when geopolitical risks ease,” said Milad Azar, Market Analyst at XTB MENA.
Broad-based gains across banking, real estate, telecommunications and energy suggest that investors are increasingly focusing on the UAE’s solid economic fundamentals, Azar said.
“Rising market participation indicates renewed appetite for risk assets and growth opportunities,” Azar said.
“Leadership from heavyweight stocks such as Aldar, e&, Emirates NBD and Emaar reflects confidence in sectors closely tied to domestic growth,” Azar said.
If stability persists, UAE equities could continue attracting regional and international capital, supporting further market expansion, Azar said.