Today's Edition
A.SREENIVASA REDDY (ABU DHABI)
UAE stock markets appear to have entered a more stable but volatile phase of trading on Thursday as regional geopolitical uncertainty continues.
The Abu Dhabi Securities Exchange (ADX) General Index (FADGI) edged down 2.017% to close at 10,044.85, managing to stay above the 10,000 mark after the second day of volatile trading. Trading activity remained robust, with 31,915 trades involving 462 million shares valued at Dh1.933 billion. The total market capitalisation of ADX-listed stocks stood at Dh3.026 trillion. One bulk trade worth Dh3.4 million involving ANAN Investment was reported by the stock exchange.
Trading on the ADX was mixed, with some blue chips recovering losses suffered in Wednesday’s stormy session.
Holding companies Alpha Dhabi and 2PointZero pulled in opposite directions, with the former losing 3.35% while the latter gained 0.53%.
Banking stocks continued the negative trend, with Abu Dhabi Islamic Bank losing 4.94%, followed by Abu Dhabi Commercial Bank which lost 4.72%. First Abu Dhabi Bank was down 1.18%.
Energy stocks bucked the trend and made strong gains. ADNOC Distribution was up 3.95%, ADNOC Drilling gained 3.21%, ADNOC Logistics and Services added 2.11% and ADNOC Gas rose 1.52%. Fertiglobe gained 2.75%, while Borouge ended the session flat.
Telecom giant e& gained 3.42%, recouping some of the losses recorded on Wednesday. Realty giant Aldar suffered a loss of 4.97%, very near the maximum permitted by regulators. It is indeed a testing time for the real estate sector.
In Dubai, the Dubai Financial Market (DFM) General Index (DFMGI) fell 1.33% to close at 6,114.71. The session recorded 19,817 trades, with 438 million shares traded for a total value of Dh1.397 billion. Market breadth showed 17 gainers, 33 decliners and four unchanged stocks.
Thursday was somewhat a mixed day, with banking major Emirates NBD and realty majors Emaar and Emaar Development losing close to the maximum 5% permitted by regulators.
Utility major DEWA bucked the trend and gained 5.26%, while road toll operator Salik gained almost 2%, thereby halting the slide of the general index. Free zone company TECOM gained more than 5%, while another utility provider Empower added 3.53%.
“Regional investor sentiment remains fragile as the Iran conflict continues to weigh on risk appetite, with many names flirting with 5% limit-downs throughout the session,” Adam Vettese, Market Analyst at eToro, said.
Even United Arab Bank, Wednesday’s standout performer, saw sharp pressure despite issuing a note confirming continuity of operations and no disruption to business, Vettese said.
On the upside, select names outperformed. “e& rallied around 3.5%, reflecting rotational buying into sectors perceived as defensive or attractively valued,” Vettese said.
ADNOC shares also gained as oil prices firmed, supporting energy sector fundamentals and offering a rare bright spot in an otherwise risk-off session, Vettese added.
