Today's Edition
A. SREENIVASA REDDY (ABU DHABI)
The UAE stock markets rallied on Tuesday after comments from US Federal Reserve officials indicated that two interest rate cuts are more likely than not.
The Abu Dhabi Securities Exchange (ADX) General Index (FADGI) rose 0.527% to close at 9,996.40, just short of the 10,000 mark, below which it had fallen recently. Trading remained active, with 19,493 trades involving 249 million shares and a total value of Dh1.03 billion. The total market capitalisation of ADX-listed stocks stood at Dh3.12 trillion.
Two IHC holding companies, Alpha Dhabi and 2PointZero, led the rally, rising 2.61% and 2.34%, respectively. Banking stocks also contributed to the uptick in the general index. First Abu Dhabi Bank was up 1.16%, Abu Dhabi Commercial Bank rose 0.84%, and Abu Dhabi Islamic Bank gained 0.68%.
Sharjah-based United Arab Bank was among the most traded stocks by volume and rose 2.46%. Realty giant Aldar was not far behind, registering a gain of 1.49%.
Among the surprises was a 3.1% rise in crypto mining company Phoenix Group, which has been under pressure in recent sessions. The mining company has recently been branding itself as an IHC company in media statements. ADNOC (Logistics and Services) was the only prominent stock to decline, slipping 0.35%.
ADX reflected selective buying in heavyweight stocks as investors repositioned after recent consolidation, Milad Azar, market analyst at XTB MENA, told Aletihad.
“The move suggests improving sentiment, supported by relatively stable oil prices and strong balance sheets of blue chips,” Azar said, while cautioning that volumes remain key to confirming the sustainability of this upward momentum.
In Dubai, the Dubai Financial Market (DFM) General Index (DFMGI) rose 0.851% to close at 6,182.55. The session recorded 14,628 trades, with 240 million shares changing hands for a total value of Dh939 million. Market breadth showed 25 gainers, 17 decliners and 11 unchanged stocks.
The DFM rally was mainly led by real estate giants Emaar and Emaar Developments, which rose more than 2%. Another realty major, Deyaar, was up 1.94% after it broke ground on DWTN Residences, a new residential landmark in Dubai. Parking operator Parkin gained a solid 3.45%, while road toll operator Salik rose 1.56%.
Real estate asset manager Alec Holdings, which was recently listed on the DFM, continued its bull run, climbing 2.44%. On the losing side, Al Mal Capital REIT slipped 10%.
The DFM rally was driven by stronger appetite for real estate stocks, Azar said.
“The advance indicates growing risk appetite and expectations of solid earnings. If supported by continued liquidity inflows, the market could attempt further gains in the near term,” the XTB MENA analyst added.
