A. SREENIVASA REDDY (ABU DHABI)

UAE stock markets recorded strong gains on Tuesday amid positive developments on the regional front.

The ADX General Index (FADGI) rose 1.248% to close at 10,232.23. The session recorded 21,833 trades involving 403 million shares worth Dh1.1 billion. The total market capitalisation of ADX-listed companies stood at Dh2.669 trillion.

Banking stocks posted gains, with the exception of First Abu Dhabi Bank, which lost 0.8%. Abu Dhabi Islamic Bank rose 1.21%, while Abu Dhabi Commercial Bank added 1.86%.

ADNOC-linked stocks delivered a subdued performance. ADNOC Logistics and Services lost 1.09%, while ADNOC Gas rose 0.62%. ADNOC Distribution remained unchanged at Dh4.03, while ADNOC Drilling slipped 0.7%. Fertiglobe fell 1.57%, while Borouge added 0.42%.

Real estate major Aldar gained 0.63%. Among holding companies, 2PointZero gained 1.33% to close at Dh2.28, while Alpha Dhabi rose 1.86% to Dh7.68.

Space42 built on its recent gains, rising 3.65%. EMSTEEL advanced 3.3%, signalling possible positive momentum in the metals sector.

In Dubai, the Dubai Financial Market General Index (DFMGI) rose 0.619% to close at 5,997.14. The session recorded 14,876 trades, with 411 million shares changing hands for a total value of Dh684 million.

Market breadth was positive, with 33 gainers and 11 decliners, while 11 stocks remained unchanged.

Real estate major Emaar Properties gained 0.69%, while its subsidiary Emaar Development declined 0.6%.

Banking stocks were mixed, with Emirates NBD rising 1.23% and Dubai Islamic Bank declining 0.41%. Mashreq Bank rose by more than 4%.

Utility provider DEWA rose 1.1%, telecom operator du gained 1.34% and toll gate operator Salik advanced 0.56%.

“Tuesday’s session was a reminder of why the UAE remains the region’s preferred home for capital. As diplomacy returned to the agenda ahead of the UN General Assembly, investors returned with conviction,” Sayed A., Chief Business Officer at Graystone Capital, said.

Abu Dhabi climbed 1.25% to 10,232, while the Saudi market ended flat and the markets in Qatar and Kuwait each lost 0.5%. “When confidence returns to the region, it flows into the UAE first,” Sayed said.

“In Abu Dhabi, the buying was selective and intelligent. Investors are rewarding banks with strong earnings momentum and clean balance sheets,” he said.

“EMSTEEL is a stock that the market is rerating on fundamentals. Its first-half EBITDA jumped 74% to Dh941 million, while its role in national projects such as Etihad Rail gives it a long runway,” Sayed said.

Dubai rose to 5,997, just short of the 6,000 mark. “A clean break above 6,000 in Dubai would be a powerful signal and, based on today’s evidence, it looks like a matter of when, not if,” Sayed said.

“Mashreq was the star performer, surging more than 4% and extending a remarkable run that has lifted the stock by nearly 40% over the past year,” he said.

“Gainers outnumbered decliners three to one, indicating that the rally was broad and not dependent on one or two heavyweights,” Sayed added.

With almost Dh1.8 billion traded across the two markets and the market capitalisation of ADX-listed companies standing at Dh2.67 trillion, Sayed said the figures demonstrated the depth of the UAE equity markets.