A. SREENIVASA REDDY (ABU DHABI)

The UAE stock markets made gains in August despite the ongoing regional situation, with Abu Dhabi’s main index rising 0.9% and the Dubai index adding 0.7%.

The FTSE ADX General Index recorded its third consecutive monthly gain, closing August at 10,007.44 points. Six of the exchange’s 10 sector indices advanced during the month, while four declined.

According to data shared by Kamco Invest, healthcare was the strongest-performing sector, rising 14.2%, mainly supported by a 17.7% increase in PureHealth shares. The industrials sector gained 6%, consumer discretionary advanced 5.8%, telecommunications rose 5.3% and real estate added 3.5%.

The telecommunications sector benefited from a 5.1% rise in e& shares, while a 23.4% increase in Eshraq Investments supported the real estate index.

Basic materials recorded the largest sectoral decline, falling 2.3%, followed by energy with a 0.7% drop. Financials declined 0.5% and consumer staples slipped 0.1%, while utilities remained unchanged.

Sharjah Cement and Industrial Development was the best-performing ADX-listed stock during August, rising 32.1%. AD Ports Group followed with a gain of 23.9%, while Fujairah Cement Industries advanced 23.6%.

Al Khaleej Investment Company recorded the largest decline, falling 12.9%. Oman and Emirates Investment Holding dropped 12.6%, while Al Buhaira National Insurance declined 8.2%.

Trading activity on the ADX improved during the month. The total volume of shares traded rose 13.3% to 4.7 billion from 4.2 billion in July, while the value of transactions increased 1.3% to Dh22.2 billion from Dh21.9 billion.

ADNOC Gas was the most actively traded stock by both volume and value, with 902.6 million shares worth Dh3 billion changing hands. Eshraq Investments ranked second by volume with 582.9 million shares, followed by Aldar Properties with 267.8 million shares.

Aldar ranked second by traded value with transactions worth Dh2.1 billion, followed by Alpha Dhabi Holding with Dh1.8 billion. The market capitalisation of ADX-listed companies stood at Dh2.86 trillion at the end of August, compared with Dh2.82 trillion a month earlier.

In Dubai, the DFM General Index returned to positive territory after declining 2.7% in July. The index gained 0.7% to close August at 5,836 points.

Five of the DFM’s eight sector indices advanced during the month. Materials recorded the largest gain at 10.9%, reflecting a similar increase in National Cement Company, the sector’s only constituent.

Consumer discretionary rose 9.9%, supported by a 14.3% increase in Talabat Holding shares. Financials gained 2.7%, while consumer staples and industrials each advanced 2.1%.

Communication services was the weakest-performing sector, declining 6.6% as du shares fell by the same percentage. Real estate dropped 2.2%, while utilities declined 1.2%.

Islamic Arab Insurance was the top-performing DFM-listed stock, rising 41.6%. Mashreq Bank gained 28.4%, while Agility advanced 18.4%.

Dubai Refreshments recorded the largest monthly decline at 10.7%, followed by Union Properties with a 10.5% drop and Al Salam Bank Sudan with a decline of 9.3%.

The volume of shares traded on the DFM increased 5.7% to 3.4 billion from 3.2 billion in July. The value of transactions rose 10% to Dh12.2 billion from Dh11.1 billion.

Talabat led the exchange by volume, with 528 million shares changing hands. Emaar Properties followed with 378 million shares, while Union Properties recorded a volume of 305.3 million shares.

Emaar was the most actively traded stock by value, recording transactions worth Dh4.2 billion. Du followed with Dh2.1 billion, while Emirates NBD recorded Dh943.9 million. 

The market capitalisation of DFM-listed companies increased to Dh939.8 billion from Dh926.5 billion at the end of July.

Other GCC equity markets also recorded a steady recovery during August amid a stabilisation in the geopolitical situation in the Middle East, Kamco Invest said. The MSCI GCC Index broke a three-month losing streak and gained 3.9%, its biggest monthly increase in seven months, supported by gains across most exchanges in the region.

UAE equities showed notable resilience in August, with both Abu Dhabi and Dubai posting monthly gains despite a challenging regional backdrop, said Milad Azar, Market Analyst at XTB MENA.

“The improvement was broad-based, particularly across healthcare, industrials, consumer discretionary and telecommunications, while higher trading volumes indicate stronger investor participation,” Azar said. The increase in market capitalisation also suggested that investor confidence remained relatively firm, he added.

Looking ahead, Azar said the key question was whether the momentum could continue if geopolitical conditions remained unstable.

“Stronger liquidity, improving sentiment across the GCC and selective gains in leading companies provide a supportive foundation, but investors are likely to remain sensitive to oil prices, regional developments and corporate earnings,” he added.