A. SREENIVASA REDDY (ABU DHABI)
UAE stock markets remained relatively stable on Monday, recording moderate declines in their main indices despite the escalating situation in the region.
The ADX General Index (FADGI) fell 0.315% to close at 9,750.75. Trading activity remained strong, with 20,922 trades involving 213 million shares worth Dh745 million. The total market capitalisation of ADX-listed companies stood at Dh2.854 trillion.
ADNOC Logistics & Services, Lulu Retail and Burjeel Holdings defied the broader trend to make gains on the ADX amid a mixed performance by blue-chip stocks.
The banking sector largely mirrored the broader market’s weakness. Abu Dhabi Islamic Bank gained nearly 1%, while Abu Dhabi Commercial Bank lost 1.5%. First Abu Dhabi Bank fell 0.56%.
ADNOC-linked stocks posted a mixed performance. ADNOC Logistics & Services rose 1.82%, while ADNOC Drilling lost 1.25%. ADNOC Gas fell 0.9%, while ADNOC Distribution lost more than 1%. Borouge declined 1.24%, while Fertiglobe rose 0.38%.
Investment holding company 2PointZero lost 1.9% to close at Dh2.07. Another investment holding company, Alpha Dhabi, slipped 1.6%, adding to the pressure on the ADX index.
Real estate major Aldar rose nearly 0.4%, bringing some hope to the property sector.
Hospital group Burjeel Holdings rose 6.54%, while supermarket operator Lulu Retail gained 2.07%, providing positive signals for the two companies and broader market.
In Dubai, the Dubai Financial Market General Index (DFMGI) fell 0.304% to close at 5,796.28. The session recorded 13,337 trades, with 124 million shares changing hands for a total value of Dh446 million. Market breadth was broadly even, with 14 gainers, 22 decliners and 11 stocks unchanged.
Real estate majors Emaar Properties and Emaar Development posted losses, with the former shedding 1.08% and the latter dropping 1.52%.
Emirates NBD gained 2.05%, helping to limit the decline in the main index, while Dubai Islamic Bank added 0.55%.
Utility provider DEWA gained 1.13%, while road-toll operator Salik lost 0.36%.
Food-delivery company talabat slipped 4.27% following Uber’s announcement of plans to acquire its parent company, Delivery Hero. Telecom operator du added 0.33%.
Persistent geopolitical uncertainty continues to keep investors cautious, but the relatively modest declines in both UAE markets suggest that selling pressure remains orderly rather than indiscriminate, Milad Azar, Market Analyst at XTB MENA, said.
“Strong trading activity and selective gains in defensive and earnings-driven names such as Burjeel, Lulu Retail and ADNOC Logistics & Services indicate investors are still willing to accumulate companies with resilient fundamentals,” Azar said.
Looking ahead, market direction is likely to depend on geopolitical developments and the pace of second-quarter earnings announcements, Azar said.
“Banking and real estate heavyweights remain key drivers of index performance, while continued strength in quality defensive stocks could help cushion volatility and support a gradual recovery if regional risks begin to ease."