Today's Edition
A. SREENIVASA REDDY (ABU DHABI)
UAE stock markets returned to negative territory as geopolitical developments weighed on investor sentiment.
The ADX General Index (FADGI) fell 1.801% to close at 9,602.11. Trading activity remained robust, with 24,006 trades involving 270 million shares valued at Dh1.142 billion. The total market capitalisation of ADX-listed stocks stood at Dh2.900 trillion.
Healthcare major PureHealth was among the few companies to buck the negative trend, posting a gain of 4.42%.
Banking stocks followed the broader market decline. Abu Dhabi Islamic Bank fell 3.93%, Abu Dhabi Commercial Bank slipped 2.34%, and First Abu Dhabi Bank lost 2.77%.
Real estate major Aldar also declined, falling 2.62%.
Holding companies 2PointZero and Alpha Dhabi dropped 4.85% and 3.61%, respectively.
Among ADNOC-listed companies, ADNOC Logistics & Services declined 3.85%, followed by ADNOC Drilling, which fell 2.68%. ADNOC Gas lost 1.82% and ADNOC Distribution declined 1.31%. Borouge was down 0.39%, while Fertiglobe traded flat.
State utility TAQA gave up recent gains, falling 3.46%.
In Dubai, the Dubai Financial Market (DFM) General Index (DFMGI) dropped 3.16% to close at 5,517.85. The session recorded 23,037 trades, with 244 million shares traded for a total value of Dh1.25 billion. Market breadth showed eight gainers, 43 decliners and three unchanged stocks.
Real estate giants Emaar and Emaar Development, along with banking major Emirates NBD, which play a central role in DFM trading, fell between 4% and 5%. Dubai Islamic Bank also declined 4.58%, while second-tier developer Deyaar dropped 4.67%.
Utility provider DEWA fell 4%, while road toll operator Salik declined 3.71%.
“Abu Dhabi and Dubai’s stock markets witnessed a broad-based sell-off today as conflict-related volatility continued to dominate investor sentiment across the region,” said Adam Vettese, Market Analyst at eToro.
“After two consecutive days of strong gains, both bourses reversed sharply. Many participants moved to lock in profits and reduce risk exposure,” Vettese said.
“As prices in blue-chip stocks ebb and flow while underlying fundamentals remain strong, the pattern of bargain hunting and profit-taking could persist as long as the geopolitical situation lingers in the background,” he added.
“The unclear outlook for ongoing diplomatic efforts generated mixed market behaviour, while evolving expectations sustained near-term volatility,” said Milad Azar, Market Analyst at XTB MENA.
Markets will remain vulnerable to geopolitical shifts, but diplomatic progress and strong macroeconomic fundamentals could support a rebound, Azar added.
