A. SREENIVASA REDDY (ABU DHABI)
UAE stock markets had mixed fortunes on Wednesday, with Abu Dhabi closing in negative territory while Dubai made gains amid no visible breakthrough in the regional situation.
The ADX General Index (FADGI) fell 0.219% to close at 10,113.70. The session recorded 21,035 trades involving 682 million shares worth Dh1.01 billion. The total market capitalisation of ADX-listed companies stood at Dh2.647 trillion. Anan Investments shares worth Dh27.5 million were sold in a single bulk transaction, according to an ADX data update.
Banking stocks declined, with Abu Dhabi Islamic Bank losing 0.92% and Abu Dhabi Commercial Bank dropping 0.37%. First Abu Dhabi Bank fell 0.3%.
ADNOC-linked stocks also delivered a subdued performance. ADNOC Gas and ADNOC Distribution remained unchanged at Dh3.26 and Dh4.04, respectively. ADNOC Logistics and Services lost 0.53%, while ADNOC Drilling slipped 0.17%. Fertiglobe lost 1.18%, while Borouge gained 0.42%.
Real estate major Aldar rose 2.06% after the Aldar-Mubadala joint venture announced the acquisition of a new commercial property in Masdar City for Dh918 million.
The subdued performance of banking and ADNOC-linked stocks weighed on the ADX index on Wednesday. In Dubai, the Dubai Financial Market General Index (DFMGI) rose 0.663% to close at 5,966.65. The session recorded 16,144 trades, with 268 million shares changing hands for a total value of Dh882 million. Market breadth was positive, with 26 gainers and 12 decliners, while 11 stocks remained unchanged.
Real estate major Emaar Properties gained 3.35%, while its subsidiary Emaar Development added 2.92%, providing a significant boost to the DFM index.
Banking stocks reported gains, with Emirates NBD advancing 0.84% and Dubai Islamic Bank adding 0.96%. Telecom operator du lost 0.87%. Utility provider DEWA gained 0.37%, while toll gate operator Salik added 0.57%.
Food delivery platform talabat gained 0.87% to close at Dh1.14.
“Aldar is no longer being priced solely as a developer, and Wednesday’s trading demonstrated that shift,” Sayed A, Chief Business Officer at Graystone Capital, said. “Aldar’s 2.06% gain was the clearest conviction trade on the ADX on Wednesday,” he said.
Through its joint venture with Mubadala, Aldar did not simply acquire office buildings; it acquired an established stream of rental income from a property that was 99% occupied at the time of the transaction, Sayed said. Its tenants include TAQA, the Department of Energy, Emirates College and Mohamed bin Zayed University of Artificial Intelligence.
“Aldar is methodically transforming itself from a cyclical developer into a recurring-income platform. On Wednesday, the market rewarded that transformation rather than merely the transaction,” he said.
Sayed also drew attention to the ADX’s total market capitalisation, which stood at Dh2.647 trillion even as the main index declined. “This is a reminder of how much market depth now exists beyond the headline index constituents,” he added.
Banking stocks declined on the ADX, while their performance on the DFM was positive. This contrasted with the previous session, when Abu Dhabi banks advanced and the two major Dubai banks declined.
“The two sessions point to selective capital rotation between the exchanges, with property stocks playing a central role,” Sayed said.