A. SREENIVASA REDDY (ABU DHABI)
UAE stock markets stayed positive despite the lack of a breakthrough in addressing the regional situation.
The ADX General Index (FADGI) rose 0.086% to close at 10,044.52. The session recorded 24,052 trades involving 484 million shares worth Dh1.5 billion. The total market capitalisation of ADX-listed companies stood at Dh2.920 trillion.
Banking stocks delivered a positive performance, with First Abu Dhabi Bank rising 1.13% and Abu Dhabi Islamic Bank gaining 0.77%. Abu Dhabi Commercial Bank fell 0.13%.
Most ADNOC-linked stocks retreated, with the regional situation weighing on the outlook. ADNOC Drilling slipped 1.66%, while ADNOC Logistics and Services fell 0.74%. ADNOC Gas dropped 1.24%, while ADNOC Distribution declined 0.74%. Fertiglobe remained unchanged at Dh2.61, while Borouge slipped 0.41%.
AD Ports gained 0.8% after its board recommended that shareholders accept L’IMAD’s Dh6.25-per-share cash offer, following a fairness opinion from HSBC Middle East.
Among holding companies, Alpha Dhabi slipped 0.39%, while 2PointZero dropped 0.48%. Property developer Aldar also declined 0.26%.
Phoenix Group, the cryptocurrency mining and data centre infrastructure company, slipped 3.44% after gaining nearly 1% in the previous session. PureHealth also declined 4.43% after rising nearly 3% in the previous session.
Space42 delivered a strong performance, rising 4.4%.
In Dubai, the Dubai Financial Market General Index (DFMGI) rose 0.27% to close at 5,882.63. The session recorded 15,850 trades, with 154.6 million shares changing hands for a total value of Dh569 million.
Market breadth was positive, with 27 gainers, 16 decliners and nine stocks remaining unchanged.
Real estate stocks stayed resilient, with Emaar Properties remaining unchanged at Dh11 and Emaar Development gaining 0.22%.
Banking stocks were mixed. Emirates NBD rose 1.24%, while Dubai Islamic Bank fell 0.81%. Mashreq advanced 1.77%. Telecom operator du fell 1.53% to Dh11.54.
Road-toll operator Salik gained 1.32%, while food delivery company talabat rose 0.81%, adding to the advance of the main index.
Etihad Energy, formerly known as Gulf Navigation Holding, gained 2.27%, building on the previous session’s gains.
Analysing the trading pattern, Sayed A., Chief Business Officer at Graystone Capital, said: “Investors are clearly not pricing in a resolution to the regional situation yet, but they are continuing to differentiate between companies exposed to geopolitical and shipping risks and those supported by strong domestic fundamentals.”
Banks continue to benefit from healthy liquidity, lending activity and profitability, whereas the weakness in ADNOC Drilling, ADNOC Gas, ADNOC L&S and ADNOC Distribution appears to reflect the geopolitical risk premium rather than any significant deterioration in their underlying businesses, Sayed said.
“AD Ports’ 0.8% gain was more transaction-specific. The stock will now increasingly trade around the probability and timing of the transaction rather than broader market sentiment,” Sayed added.
Space42 was the standout performer on the ADX, with the company building a stronger fundamental story around satellite technology, AI, autonomous mobility and contracted revenues, he said.
“Dubai remained comparatively resilient. Trading reinforced the continued preference for banks with strong balance sheets and earnings growth,” Sayed said.
Real estate stocks also held firm despite geopolitical uncertainty, he said, adding that investors appeared increasingly willing to look beyond temporary regional disruption.
“Overall, today’s market tells us that UAE investors are not ignoring geopolitical risk; they are becoming more selective in how they price it,” he added.
Until there is greater clarity on the regional situation and the Strait of Hormuz, headline indices are likely to remain relatively range-bound, Sayed said.