A. SREENIVASA REDDY (ABU DHABI)
UAE stock markets gained some momentum on Tuesday, with Abu Dhabi and Dubai closing higher despite the absence of a credible breakthrough in efforts to address the regional situation.
The ADX General Index (FADGI) rose 0.347% to close at 9,784.62. Trading activity remained strong, with 20,406 trades involving 269 million shares worth Dh1.07 billion. The total market capitalisation of ADX-listed companies stood at Dh2.865 trillion.
Banking stocks delivered a mixed performance. First Abu Dhabi Bank jumped 1.81%, while Abu Dhabi Commercial Bank lost nearly 1%. Abu Dhabi Islamic Bank dropped 0.76%.
ADNOC-linked stocks showed buoyancy after ADNOC announced its final investment decision (FID) on the $6.2 billion Umm Shaif Gas Cap project.
ADNOC Gas gained 1.21%, while ADNOC L&S rose 1.3%. ADNOC Drilling advanced 2.16%, while ADNOC Distribution gained 0.77%. ADNOC Distribution shares worth Dh146 million changed hands in a single transaction at a price of Dh3.86. Borouge and Fertiglobe bucked the trend, falling 1.13% and 0.42%, respectively.
The Umm Shaif project will unlock more than 600 million standard cubic feet per day (scfd) of natural gas and associated gas liquids, equivalent to almost 10% of the UAE’s current daily gas consumption. The FID includes three engineering, procurement and construction packages totalling $5.1 billion (Dh18.8 billion) for large-scale offshore infrastructure, awarded by ADNOC to consortiums comprising major UAE and international contractors. The development also includes a $365 million (Dh1.3 billion) programme covering 14 wells and integrated drilling services, to be delivered by ADNOC Drilling over 18 months.
Investment holding company 2PointZero gained 0.97% to close at Dh2.09, while Alpha Dhabi slipped 0.14%.
Real estate major Aldar rose 0.53%, providing some support to the property sector.
Hospital group Burjeel Holdings rose 1.75%, while supermarket operator Lulu Retail gained 2.77%, indicating selective buying outside the oil and banking sectors.
In Dubai, the Dubai Financial Market General Index (DFMGI) rose 0.278% to close at 5,812.37. The session recorded 13,823 trades, with 182 million shares changing hands for a total value of Dh532 million. Market breadth was positive, with 21 gainers, 17 decliners and 10 stocks unchanged.
Real estate majors Emaar Properties and Emaar Development moved in opposite directions, with the former rising 0.91% and the latter dropping 0.16%.
Dubai’s major banking stocks weakened. Emirates NBD dropped 0.33%, while Dubai Islamic Bank lost 0.54%.
Utility provider DEWA gained 1.12%, while road-toll operator Salik advanced 1.64%.
Food-delivery company talabat gained 0.89%. Air Arabia dropped 2.2% amid renewed concerns about travel disruptions.
The gains in UAE equities reflect improving investor confidence, supported by ADNOC’s investment decision on the Umm Shaif Gas Cap project, which reinforces the country’s long-term energy expansion strategy, Milad Azar, Market Analyst at XTB MENA, said.
“Strength across ADNOC-related stocks suggests investors are rewarding companies positioned to benefit from higher capital expenditure and future production growth,” Azar added.
Despite lingering geopolitical uncertainty, selective buying extended beyond energy to consumer and healthcare stocks, indicating broader market resilience, Azar said.
Commenting on the near-term outlook, Azar said: “While banking performance remained mixed, sustained liquidity and solid corporate fundamentals should continue to underpin UAE equities, although external geopolitical developments are likely to keep short-term market volatility elevated.”