Today's Edition
A. SREENIVASA REDDY (ABU DHABI)
It was a good day for the UAE stock markets as US President Donald Trump’s positive-sounding remarks on the conflict with Iran helped them recover a significant portion of the losses suffered in recent weeks.
The Abu Dhabi Securities Exchange General Index (FADGI) inched up 1.365% to close at 9,997.19, just short of the 10,000 mark, below which it had recently fallen after the crisis broke out. Trading activity remained robust, with 58,123 trades involving 665 million shares valued at Dh3.45 billion.
The total market capitalisation of ADX-listed stocks stood at Dh2.995 trillion. The unusually high volumes and value of trade indicate strong underlying investor appetite.
Banking stocks made a strong comeback, with Abu Dhabi Commercial Bank rising 8.68% and Abu Dhabi Islamic Bank gaining 5.75%. First Abu Dhabi Bank added 2.2%.
Holding companies 2PointZero and Alpha Dhabi rose 3.41% and 0.75%, respectively.
Among energy stocks, ADNOC Drilling rose 3.07%, ADNOC Logistics and Services added 2.77%, ADNOC Distribution lost 2.08%, while ADNOC Gas gained 1.23%. Fertiglobe lost 2.28% while Borouge traded flat.
Aldar lost 3.63%, indicating it may take some time to restore confidence in the real estate sector.
In Dubai, the Dubai Financial Market (DFM) General Index (DFMGI) rose 1.96% to close at 5,866.53. The session recorded 45,366 trades, with 641 million shares traded for a total value of Dh4.09 billion. Market breadth showed 41 gainers, 11 decliners and one unchanged stock.
The volume and value were unusually high, confirming a trend seen on ADX.
Banking stocks led the rally, with Emirates NBD gaining 8.2% and Dubai Islamic Bank adding 4.81%. Road toll operator Salik added 2%, while delivery app Talabat gained 3.6%. Utility provider DEWA gained 0.7%.
The real estate sector, however, remained weak, with Emaar losing 4.13% and Emaar Developments declining 3.15%. Deyaar bucked the trend and gained 4%.
“UAE equities rebounded as investor sentiment improved after President Trump’s remarks suggesting the conflict may be nearing an end,” Adam Vettese, Market Analyst at eToro, said.
Property stocks, however, underperformed. “The sector is often viewed as more sensitive to shifts in foreign capital flows and regional stability,” Vettese said.
According to market analysis from eToro, the DFM has fallen around 17% since reopening on March 4, marking six consecutive days of losses, while ADX has declined close to 6% across eight straight sessions.
“Volatility is the price of entry in markets right now, and investors who understand that will be far better positioned than those who try to time their way around it. This is a market being driven by headlines and those headlines can turn on a dime, making this a particularly challenging environment for investors,” Josh Gilbert, Market Analyst at eToro, said.
Periods of heightened volatility can often lead investors to make decisions driven by fear. However, history shows that some of the strongest market rebounds occur immediately after the sharpest declines.
“The worst time to make investment decisions is when fear is at its highest,” Gilbert said. “Selling after a sharp market decline risks locking in losses and missing the early stages of a recovery, which can have long-term implications for portfolio performance.”
In uncertain market environments, defensive and dividend-paying companies often provide greater stability.
“Investors should be focusing on companies with strong balance sheets, reliable cash flows, and businesses that people continue to spend with regardless of geopolitical developments,” Gilbert said.
