A. SREENIVASA REDDY (ABU DHABI)
UAE stock markets defied the odds to post gains on Wednesday, driven by a rally in banking stocks, even as the geopolitical situation in the region appeared to worsen.
The ADX General Index (FADGI) rose 0.325% to close at 9,833.59. The session recorded active trading, with 21,382 transactions involving 213 million shares worth Dh1.05 billion. The total market capitalisation of ADX-listed companies stood at Dh2.574 trillion.
Banking stocks led the gains, with First Abu Dhabi Bank advancing 2.02%. Abu Dhabi Islamic Bank added 2.53%, while Abu Dhabi Commercial Bank rose 1.77%.
All ADNOC-linked stocks traded lower amid concerns about supply-chain disruptions. ADNOC Drilling fell 1.07%, while ADNOC Logistics and Services slipped 0.93%. ADNOC Distribution dropped 0.26% and ADNOC Gas fell 0.31%. Fertiglobe declined 0.84%, while Borouge lost 0.43%.
Telecom operator etisalat gained 1.05% to close at Dh21.10, while real estate major Aldar lost 0.37%.
Among holding companies, 2PointZero lost 0.93% to reach Dh2.14, while Alpha Dhabi remained unchanged at Dh7.19.
Americana Restaurants, which operates several international restaurant franchises, rose 2.07%.
In Dubai, the Dubai Financial Market General Index (DFMGI) rose 0.575% to close at 5,892.57. The session recorded 15,176 trades, with 148 million shares changing hands for a total value of Dh491 million.
Market breadth was positive, with 24 gainers and nine decliners, while nine stocks remained unchanged.
Real estate majors Emaar Properties and Emaar Development rose 0.1% and 1.72%, respectively.
Banking stocks also advanced on the DFM, with Emirates NBD rising 2.67% and Dubai Islamic Bank gaining nearly 1%. Commercial Bank of Dubai rose 1.02%.
Toll-gate operator Salik gained 2.33%, while utility provider DEWA slipped 1.46%.
Sharjah-based airline Air Arabia rose 0.22% despite uncertainty over the full resumption of air travel. Food delivery platform talabat advanced 2.33%.
“UAE equities showed real confidence despite worsening geopolitical tensions, with both the Abu Dhabi and Dubai markets closing higher,” said Sayed A., Chief Business Officer at Graystone Capital.
Referring to the rally in banking stocks across both exchanges, Sayed said: “Investors backed the sector’s earnings strength ahead of the third-quarter results.”
Commenting on the decline in ADNOC-linked stocks, he said: “The moves were modest and, with oil prices remaining elevated, the group’s long-term outlook remains well supported.
“Wednesday’s session showed that the market can tell headlines and fundamentals. Investors continued to buy quality stocks, with banks, consumer companies and infrastructure assets remaining central to the UAE economy,” he said.
Regional developments will continue to influence sentiment in the coming days, Sayed said.
“The third-quarter earnings season will be the next test, while liquidity remains healthy and confidence in the UAE’s long-term prospects remains strong,” he added.