A. SREENIVASA REDDY (ABU DHABI)

UAE stock markets continued to be affected by the escalating regional situation, with the Abu Dhabi and Dubai exchanges reporting losses on Tuesday for a second consecutive session.

The ADX General Index (FADGI) fell 0.52% to close at 9,852.27. Trading activity remained strong, with 24,799 trades involving 251 million shares worth Dh1.03 billion. The total market capitalisation of ADX-listed companies stood at Dh2.882 trillion.

Fertiglobe, United Arab Bank, and Americana Restaurants were among the few stocks that bucked the broader trend and posted gains.

The banking sector largely mirrored the market’s weakness. Abu Dhabi Islamic Bank slipped 1.74%, while First Abu Dhabi Bank dropped 0.78%. Abu Dhabi Commercial Bank, however, rose 0.56%, providing some support to the sector.

ADNOC-linked stocks also reflected the broader decline. ADNOC Drilling lost 1.04%, while ADNOC Gas dropped 1.75%. ADNOC Distribution slipped 0.5%, while ADNOC Logistics & Services closed with a marginal loss of 0.16%. The company said in a disclosure its crude oil tankers had been struck by projectiles while transiting the Strait of Hormuz.

Borouge declined 1.22%, while Fertiglobe gained 2.28%.

Investment holding company 2PointZero slipped 2.33% to Dh2.1. A stock market disclosure said E Point Zero Holding, a subsidiary of 2PointZero Group, had completed the acquisition of 100% of the issued share capital of US-based Traverse Midstream Partners in a deal valued at $2.25 billion.

Another investment holding company, Alpha Dhabi, also declined, shedding 2.73%.

Real estate major Aldar fell 2.63%, with the property sector remaining among the most sensitive to the ongoing regional situation.

In Dubai, the Dubai Financial Market General Index (DFMGI) dropped 1.28% to close at 5,890.99. The session recorded 15,024 trades, with 138 million shares changing hands for a total value of Dh517 million. Market breadth was weak, with five gainers, 39 decliners and six stocks unchanged.

The DFM came under pressure as key real estate and banking stocks retreated. Emaar Properties and Emaar Development fell 0.86% and 0.58%, respectively.

Emirates NBD lost 2.67%, while Dubai Islamic Bank declined 2.21%.

Utility provider DEWA fell 2.71%, while road-toll operator Salik lost 0.89%.

Telecom operator du fell 1.14%, while the food-delivery company Talabat declined 0.84%.

Regional geopolitical tensions continue to dominate investor sentiment, prompting broad-based selling despite resilient trading volumes, Milad Azar, Market Analyst at XTB MENA, said.

“The market's ability to sustain healthy liquidity suggests investors are repositioning rather than exiting, while selective gains in Fertiglobe and defensive names indicate capital is rotating toward companies perceived as better insulated from near-term uncertainty,” Azar said.

The pressure on banking, real estate and ADNOC-linked stocks reflects heightened risk aversion rather than weakening fundamentals, he added.

Commenting on the outlook, Azar said: “Once geopolitical tensions stabilise, attention is likely to shift back to second-quarter earnings and corporate execution, which should determine whether current valuations present an attractive entry point for long-term investors.”