A. SREENIVASA REDDY (ABU DHABI)
Banking stocks shone on the Abu Dhabi Securities Exchange (ADX) on Wednesday, even as the Dubai Financial Market (DFM) posted solid gains after losses in the previous few sessions.
The ADX General Index (FADGI) fell 0.16% to close at 9,788.52. Trading activity remained strong, with 21,172 trades involving 259 million shares valued at Dh2.88 billion. The total market capitalisation of ADX-listed stocks stood at Dh2.875 trillion.
Banking stocks provided support to ADX, with Abu Dhabi Islamic Bank gaining 2.03%. First Abu Dhabi Bank added 0.59%, while Abu Dhabi Commercial Bank advanced 0.14%.
ADNOC-linked stocks were mixed. ADNOC Logistics and Services lost 1.66% after its recent rally following upgraded guidance for this year. ADNOC Distribution gained 0.51%, while ADNOC Gas stayed flat at Dh3.44.
ADNOC Drilling gained 0.18%. Borouge lost 1.18%, while Fertiglobe dropped 1.45%.
Holding company Alpha Dhabi lost 0.38%. Another holding company, 2PointZero, lost 9.35%, with its share price reaching Dh2.12.
Realty giant Aldar also followed the broader market trend, dropping 0.85%. AI company Presight gained 2.57%, while Americana Restaurants, franchisee for major food outlets, advanced 1.97%.
In Dubai, the Dubai Financial Market General Index (DFMGI) rose 0.915% to close at 6,010.07. The session recorded 12,890 trades, with 210 million shares changing hands for a total value of Dh625 million. Market breadth was mixed despite the index gain, with 23 gainers, 26 decliners and six stocks unchanged.
Real estate heavyweights Emaar and Emaar Development led the market rally, with the former gaining 1.01% and the latter advancing 3.04%.
Emirates NBD gained 1.55% and Dubai Islamic Bank rose 1.56%, adding to the DFM rally. Telecom company du topped the list of gainers with a rise of 3.51%.
Utility provider DEWA lost 0.72%, while road toll operator Salik gained 0.85%.
Food delivery app Talabat and supermarket firm Spinneys were among the prominent losers on DFM.
Commenting on Wednesday’s trading, Milad Azar, Market Analyst at XTB MENA, said the divergence between ADX and DFM highlights sector rotation rather than broad market weakness.
“Banking stocks continued to attract investors on the back of resilient earnings expectations and strong balance sheets, while profit-taking in selected industrial and holding companies weighed on the Abu Dhabi index following recent gains,” Azar said.
The strong rebound in Dubai suggests investor appetite remains healthy, particularly for high-quality real estate and financial names, Azar said.
“As the new quarter begins, markets are likely to remain stock-specific, with liquidity favouring companies delivering earnings,” Azar added.