A. SREENIVASA REDDY (ABU DHABI)
The Abu Dhabi Securities Exchange (ADX) stayed resilient on Tuesday, closing with a marginal fall amid a global sell-off across bourses over fears of an AI bubble and US Federal Reserve interest rates. The Dubai market followed the global trend more closely, falling more than 1%.
The ADX General Index (FADGI) fell 0.11% to close at 10,024.70. The index had fallen more than 0.5% in the first few hours of trading before paring losses. Trading activity remained strong, with 27,364 trades involving 366 million shares valued at Dh1.2 billion. The total market capitalisation of ADX-listed stocks stood at Dh2.932 trillion.
Most blue-chip stocks traded lower amid tremors in global stock markets. Among banking stocks, Abu Dhabi Islamic Bank lost 1.47%, while Abu Dhabi Commercial Bank dropped 0.93%. First Abu Dhabi Bank fell 0.77%.
ADNOC-linked stocks were more resilient than many others, with ADNOC Drilling and ADNOC Gas trading flat at Dh5.94 and Dh3.46, respectively. ADNOC Distribution was up 0.5%, while ADNOC Logistics and Services was down 0.5%. Borouge declined 0.39%, while Fertiglobe dropped more than 2%.
Holding company 2PointZero was up 0.4%, with its share price reaching Dh2.27. FAB Securities has put a “buy” rating on the stock with a target price of Dh3.30. Another holding company, Alpha Dhabi, lost 0.37%.
Realty giant Aldar dropped 1.13% after recent gains.
In Dubai, the Dubai Financial Market General Index (DFMGI) fell 1.269% to close at 6,104.98. The session recorded 15,630 trades, with 200 million shares changing hands for a total value of Dh838 million. Market breadth remained negative, with 10 gainers, 35 decliners and six stocks unchanged.
Real estate heavyweights Emaar and Emaar Development led the market fall, with the former losing 2.33% and the latter dropping 3.85%.
Emirates NBD lost 2.41% and Dubai Islamic Bank dropped 0.39%, adding to the downward trend.
Road toll operator Salik lost 1.53%. Sharjah-based carrier Air Arabia slipped 2.24%, while DEWA dropped 0.67%.
Al Mal Capital REIT, REIT, and Parkin were among the few stocks that gained on DFM on a day when most stocks fell.
“The ADX’s ability to hold above the 10,000 level despite a broad global sell-off highlights the market’s underlying resilience and continued support from domestic liquidity,” said Milad Azar, Market Analyst at XTB MENA.
Strong trading volumes and the relative stability of several ADNOC-linked stocks suggest investors remain focused on fundamentals rather than reacting aggressively to external volatility, Azar said.
“Dubai’s sharper decline reflects its higher sensitivity to movements in real estate and financial stocks, where recent gains encouraged profit-taking,” Azar said.
However, the pullback appears technical rather than driven by deteriorating fundamentals, Azar said.
"As long as oil prices remain supportive and UAE economic indicators stay healthy, regional markets may continue to outperform many global peers once international risk sentiment stabilizes,” Azar added.