A. SREENIVASA REDDY (ABU DHABI)

UAE stock markets extended their gains for a third consecutive session on Tuesday, with both Abu Dhabi and Dubai advancing steadily.

The ADX General Index (FADGI) rose 0.454% to close at 10,021.04, crossing the key 10,000-point mark. The session recorded 24,690 trades involving 389 million shares worth Dh1.08 billion. The total market capitalisation of ADX-listed companies stood at Dh2.619 trillion.

Banking stocks were mixed, with Abu Dhabi Commercial Bank advancing 0.65% and First Abu Dhabi Bank rising 0.41%, while Abu Dhabi Islamic Bank dropped 0.43%.

ADNOC-linked stocks showed weakness despite the broader market’s positive performance. ADNOC Drilling lost 0.51%, while ADNOC Gas dropped 0.62%. ADNOC Distribution remained unchanged at Dh4.03, while ADNOC Logistics and Services reversed the previous day’s loss with a gain of more than 1%. Fertiglobe dropped 0.7% to Dh2.82, while Borouge advanced 0.42% to Dh2.40.

Among holding companies, 2PointZero rose 5.66% to Dh2.24, while Alpha Dhabi dropped 0.93%.

Real estate major Aldar declined 0.51% after the previous day’s gain, while telecom operator e& added 2.26%.

AD Ports rose to Dh6.19, approaching the Dh6.25 per-share price offered by L’IMAD Holding under its take-private bid. ADQ, a subsidiary of L’IMAD Holding, said the conditions set out in the offer had been met, indicating that the process of acquiring the remaining shares through ADX had reached an advanced stage.

In Dubai, the Dubai Financial Market General Index (DFMGI) rose 0.259% to close at 5,946.67. The session recorded 16,378 trades, with 289 million shares changing hands for a total value of Dh492 million.

Market breadth was negative, with 20 gainers and 24 decliners, while nine stocks remained unchanged.

Real estate major Emaar Properties fell 0.36%, while its subsidiary Emaar Development slipped 0.15%, holding back the main index.

Banking stocks advanced, with Emirates NBD gaining 1.38% and Dubai Islamic Bank adding 0.41%. Emirates Investment Bank, which is usually a slow-moving stock, rose 7.09%.

Telecom operator du gained more than 2%, while utility provider DEWA remained unchanged at Dh2.80. Road-toll operator Salik lost 0.19%.

Crossing the 10,000-point mark represents a notable milestone in the ADX’s recovery, said Sayed A., Chief Business Officer at Graystone Capital.

Commenting on trading in both markets, he said: “The gains in the indices were led by a small number of large companies rather than a broad-based advance.”

“Telecom major e& did much of the work on the ADX.  A 2.26% move in one of the exchange's largest constituents carries the index on its own,” Sayed said.

Referring to the cash offer for AD Ports Group, he said: “With ADQ confirming that all the conditions of L’IMAD’s Dh6.25 offer have been satisfied, the shares closed at Dh6.19, less than 1% below the offer price. The narrow spread on a deal of this size tells you the market regards completion as certain.

"This follows TAQA’s delisting at the beginning of the month. The sovereign consolidation of strategic infrastructure assets reflects long-term conviction in those businesses,” Sayed added.

Looking ahead, he said: “The market’s near-term direction is likely to be determined by the US inflation data due on Friday and the Federal Reserve’s decision on September 16.”