Today's Edition
A. SREENIVASA REDDY (ABU DHABI)
UAE stock markets resumed their downward journey on Wednesday after a one-day respite as no positive news emerged from the ongoing geopolitical situation. After early gains, the markets turned south as a steady stream of negative news began to emerge.
The Abu Dhabi Securities Exchange General Index (FADGI) lost 1.326% to close at 9,864.62. Trading activity remained robust, with 36,513 trades involving 331 million shares valued at Dh1.71 billion. The total market capitalisation of ADX-listed stocks stood at Dh2.949 trillion.
Banking stocks lost some of the gains made on Tuesday, with Abu Dhabi Islamic Bank losing 3.28%. First Abu Dhabi Bank slipped 3.23%, while Abu Dhabi Commercial Bank shed 1.31%. Holding companies 2PointZero and Alpha Dhabi lost 1.65% and 0.25%, respectively.
Among energy stocks, all were on a losing track. ADNOC Drilling slipped 1.59%, ADNOC Logistics and Services lost 0.77%, ADNOC Distribution shed 1.86%, while ADNOC Gas declined 1.52%. Two other ADNOC companies, Fertiglobe and Borouge, lost 2.09% and 0.78%, respectively.
Aldar lost almost 5%, indicating that very tough times may lie ahead for the real estate sector.
In Dubai, the Dubai Financial Market (DFM) General Index (DFMGI) fell 2.39% to close at 5,726.2. The session recorded 30,966 trades, with 325 million shares traded for a total value of Dh1.56 billion. Market breadth showed six gainers, 42 decliners and four unchanged stocks.
Real estate giants Emaar and Emaar Development led the fall with losses of 4.71% and 4.89%, almost near the ceiling limit. Deyaar too fell 3%. Realty appears to be the worst-hit sector in the present crisis.
Banking stocks Emirates NBD and Dubai Islamic Bank fell 4.94% and 1.18%, respectively. Union Properties, ALEC Holding and Emirates Reem Investment were among the prominent companies that hit the 5% downward limit.
Salik lost 2.66%, while delivery app Talabat traded flat. Utility provider DEWA lost 0.69%.
Sharjah carrier Air Arabia and Parkin were among the few gainers, posting marginal upticks of 0.7% and 0.21%, respectively.
“UAE equities surrendered early gains to close firmly lower, as heightened regional tensions continued to drive volatility and outsized market moves,” Adam Vettese, Market Analyst at eToro, said.
Initial optimism at the open was fuelled by tentative signs of renewed risk appetite, with investors engaging in selective bargain hunting following recent panic-driven selling. “However, sentiment deteriorated as reports of escalating attacks on commercial shipping dampened confidence, prompting a renewed wave of selling,” Vettese added.
Oil prices firmed amid the developments, reflecting increased geopolitical risk, Vettese said.
“While selective gains were observed in pockets of the market, trading direction remains firmly dictated by geopolitical headlines,” Vettese said.
