Today's Edition
A. SREENIVASA REDDY (ABU DHABI)
ADNOC companies remained resilient on the Abu Dhabi Securities Exchange (ADX) even as UAE stock markets came under heavy selling pressure amid the continuing standoff in the Strait of Hormuz.
The ADX General Index (FADGI) fell 1.237% to close at 9,778.76. Trading activity remained robust, with 35,508 trades involving 688 million shares valued at Dh1.844 billion. The total market capitalisation of ADX-listed stocks stood at Dh2.831 trillion.
ADNOC-linked stocks either posted gains or remained stable after strong advances in the previous session following the UAE’s decision to exit OPEC and OPEC+. ADNOC Drilling gained 3.1% and ADNOC Gas rose 1.2%, even as most stocks declined. ADNOC Logistics and Services slipped 0.68%, while ADNOC Distribution fell more than 1%. Fertiglobe remained flat at Dh3.74 after a more than 10% surge in the previous session following its first-quarter results. Borouge also held steady at Dh2.53 after its Q1 results reflected the impact of regional developments.
Holding companies Alpha Dhabi and 2PointZero declined more than 2%, in line with the broader market trend.
Banking stocks also tracked the overall weakness, with Abu Dhabi Islamic Bank falling nearly 5%, the maximum daily limit. First Abu Dhabi Bank dropped 4.36%, while Abu Dhabi Commercial Bank slipped 0.86%.
Real estate major Aldar also came under pressure, declining 4.46%.
ADX disclosed a Dh71.7 million bulk transaction involving Sharjah Islamic Bank rights, which are trading on the exchange.
In Dubai, the Dubai Financial Market (DFM) General Index (DFMGI) fell 1.625% to close at 5,766.05. The session recorded 23,240 trades, with 268 million shares changing hands for a total value of Dh954 million. Market breadth remained weak, with 10 gainers, 41 decliners and eight stocks unchanged.
Emaar fell 4.38%, while its sister unit, Emaar Development, dropped 2.93%, weighing on the index. Emirates NBD declined 1.7%, while Dubai Islamic Bank slipped 0.28%.
Sharjah-based carrier Air Arabia fell 4.44%.
Road toll operator Salik declined 2.78%, while utility major DEWA lost 1.19%.
“Risk-off sentiment dominated trading despite a sharp spike in global oil prices, which offered only limited support to energy-related names,” said Adam Vettese, Market Analyst at eToro.
Investors grew wary of potential slowdowns in real estate demand and tourism activity if regional tensions escalate further, Vettese said.
“Markets are expected to remain volatile in the near term as investors closely monitor geopolitical developments for greater clarity,” he added.
