Today's Edition
A. SREENIVASA REDDY (ABU DHABI)
Fertiglobe and ADNOC Distribution were among the prominent stocks that rose on Monday, even as most blue chips across the UAE stock markets declined amid continuing geopolitical tensions.
A statement by US President Donald Trump on postponing proposed strikes on Iran energy sites came after markets had closed.
The ADX General Index (FADGI) fell 1.547% to close at 9,423.02. Trading activity remained robust, with 24,728 trades involving 279 million shares valued at Dh1.16 billion. The total market capitalisation of ADX-listed stocks stood at Dh2.849 trillion.
Fertiglobe was up 5.67%, ADNOC Distribution rose 2.22%, and ADNOC Drilling gained 1.66%, even as most blue chips — including Abu Dhabi Islamic Bank, Abu Dhabi Commercial Bank, First Abu Dhabi Bank, Aldar, Alpha Dhabi, PureHealth and AD Ports — fell by around 5%, close to the maximum permitted under prevailing regulations.
2PointZero Group gained 0.52%, with its share price reaching Dh1.94. Retailer Lulu was another notable loser, declining 4.29%.
In Dubai, the Dubai Financial Market (DFM) General Index (DFMGI) fell 3.013% to close at 5,383.02. The session recorded 26,474 trades, with 253 million shares traded for a total value of Dh1.03 billion. Market breadth showed seven gainers, 43 decliners and four unchanged stocks.
Real estate giants Emaar, Emaar Development and Deyaar led the market’s decline, each falling close to the maximum permitted limit of 5%. Emirates NBD also declined 4.9%, reflecting the depth of negative sentiment driven by geopolitical tensions. Salik was one of the notable gainers, rising 1.15%.
National Cement Company recorded an unusual rise of 12.85%, followed by United Foods Company, which gained 4.17%.
“UAE markets opened the week sharply lower as escalating US-Iran tensions weighed heavily on investor sentiment,” Adam Vettese, Market Analyst at eToro, told Aletihad.
The renewed geopolitical uncertainty triggered a broader risk-off mood across regional markets. “Investors are increasingly pricing out the likelihood of near-term rate cuts in major economies such as the US and UK, as fears grow that a prolonged conflict could drive energy prices higher and weigh on global economic growth,” Vettese added.
“Heightened uncertainty fuelled risk aversion, triggering broad declines across most sectors as heavyweight stocks dragged on the overall market,” Joseph Dahrieh, managing director at Tickmill, told Reuters.
“Firms in the banking, real estate, and other sectors continue to maintain strong financial positions, leaving the market well-placed for a recovery once risk aversion fades and investor appetite for risk begins to improve,” he said.
The markets are likely to open on a positive note on Tuesday, as investors are expected to price in the improved sentiment following reports of talks between the United States and Iran.
