Today's Edition
A. SREENIVASA REDDY (ABU DHABI)
UAE stock markets reported robust trading activity even as the geopolitical situation continued to cast a shadow over Gulf economies.
The ADX General Index (FADGI) fell 0.740% to close at 9,525.78. Trading activity remained strong, with 21,601 trades involving 338 million shares valued at Dh1.868 billion. The total market capitalisation of ADX-listed stocks stood at Dh2.782 trillion.
A total of 13 bulk trades worth Dh1.071 billion were reported, involving shares of major companies such as Abu Dhabi Islamic Bank, ADNOC Drilling, ADNOC Logistics and Services, AD Ports, Aldar, Alpha Dhabi, Borouge, Fertiglobe and PureHealth.
Fertiliser major Fertiglobe was among the few companies to buck the negative trend, posting a gain of 7%.
Banking stocks followed the broader market decline. Abu Dhabi Islamic Bank fell 1.46%, Abu Dhabi Commercial Bank slipped 1.27%, and First Abu Dhabi Bank lost 2.19%.
Real estate major Aldar declined 0.51%, which can be described as marginal given the present situation.
Holding companies 2PointZero and Alpha Dhabi dropped 2.97% and 2.15%, respectively.
Among ADNOC-listed companies, ADNOC Drilling fell 1.56%, while ADNOC Distribution declined 2.60%. ADNOC Gas rose 0.31%, which was notable given the market conditions. ADNOC Logistics & Services and Borouge reported flat trading.
In Dubai, the Dubai Financial Market (DFM) General Index (DFMGI) dropped 1.24% to close at 5,442.62. The session recorded 19,755 trades, with 183 million shares traded for a total value of Dh830 million. Market breadth showed 14 gainers, 30 decliners and 10 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 2% and 3%. Dubai Islamic Bank also declined 3.18%, while toll operator Salik fell 2.16%.
“Both the ADX and the DFM closed lower, reflecting broad risk aversion as investors weighed the risks of the current situation,” said Adam Vettese, Market Analyst at eToro.
Trading volumes remained solid, but market participants stayed cautious, closely monitoring developments for signs of de-escalation, Vettese said.
Oil markets presented a contrasting picture, as Brent crude spiked more than 3% to around $116 per barrel due to continued fears of supply disruptions. “This volatility weighed heavily on sentiment across UAE equities,” Vettese said.
Fertiglobe saw a sharp rise as the conflict threatens global fertiliser supply chains, positioning UAE producers favourably amid potential shortages, Vettese added.
