Today's Edition
A.SREENIVASA REDDY (ABU DHABI)
The UAE stock markets witnessed robust trading activity in March, with both the Abu Dhabi and Dubai exchanges reporting strong volumes and sustained investor participation despite regional geopolitical developments.
On the Abu Dhabi Securities Exchange (ADX), total trading volume rose by 11.1% to reach 7.1 billion shares in March, compared to 6.4 billion shares in February, reflecting increased market activity and investor engagement. The total value of shares traded remained largely stable at Dh28.9 billion, indicating continued liquidity in the market.
Dana Gas led trading activity by volume with 1.6 billion shares, followed by Aldar Properties and 2PointZero Group with 653.3 million and 628.1 million shares, respectively. In terms of value traded, Aldar Properties topped the list with Dh5.2 billion, followed by Abu Dhabi Commercial Bank and First Abu Dhabi Bank with Dh2.9 billion and about Dh2.4 billion, respectively.
Among stock performers, Fertiglobe emerged as the top gainer with a 16.8% increase, supported by strong shareholder returns and operational resilience. The basic materials sector was the only sector to post gains during the month, reflecting pockets of strength within the market.
Supporting the broader financial environment, the UAE Central Bank introduced a comprehensive resilience package aimed at enhancing liquidity and supporting the banking sector. The measures allow banks to access up to 30% of reserve balances and include funding support, capital buffer relief and credit risk management initiatives, reinforcing confidence in the financial system.
On the Dubai Financial Market (DFM), trading value showed strong growth, rising 26.2% to Dh24.7 billion in March, highlighting increased investor participation and capital flows into the market. Trading volumes remained broadly stable at 5.1 billion shares.
Emaar Properties dominated trading activity, leading both in volume with around 0.9 billion shares and in value with Dh10.8 billion. It was followed by Emirates NBD and Emaar Development in terms of traded value, with Dh2.9 billion and Dh2.1 billion, respectively.
On the performance front, Naeem Holding was the top gainer, rising 15%, followed by International Financial Advisors and Talabat Holding, which posted gains of 10.3% and 9.7%, respectively. The materials sector stood out as the only sector to record gains during the month.
Economic measures further supported market sentiment, with Dubai announcing a Dh1 billion stimulus package to support businesses, including fee deferrals for key sectors such as hospitality. In addition, Dubai’s real estate market showed resilience, with post-Eid transactions rising 49% to Dh8.7 billion, driven largely by strong off-plan sales and sustained investor interest in high-liquidity locations.
UAE equity markets delivered a constructive performance in March, with rising volumes on ADX signalling improved investor engagement and healthy market depth, said Milad Azar, Market Analyst at XTB MENA.
“Stable traded values alongside higher volumes suggest consistent liquidity rather than speculative spikes, which is a positive structural indicator,” Azar said.
Leadership from stocks such as Aldar and Dana Gas highlights sustained interest in core sectors, while gains in basic materials reflect selective strength, he added.
On the Dubai side, a strong surge in traded value on DFM reinforces the narrative of renewed capital inflows.
“Heavyweight names such as Emaar Properties continue to anchor market activity, supported by resilient real estate fundamentals,” Azar said.
Government stimulus measures and post-Eid transaction growth further underline economic momentum, creating a supportive backdrop for equities despite external uncertainties, he added.
“Overall, the market tone remains cautiously optimistic but fundamentally supported. Policy initiatives from the Central Bank of the UAE enhance liquidity and reinforce financial stability,” Azar noted.
While geopolitical risks persist, the UAE’s structural advantages position it well for a potential re-rating once external pressures ease, he added.
Sentiment remains finely balanced between cautious optimism and underlying structural risks, according to commentary from eToro.
“A market caught between fragile optimism and structural risk is one where discipline matters more than direction,” said Razan Hilal, Market Analyst, CMT at FOREX.com: “Technical levels are holding for now, but the broader narrative — spanning geopolitics, inflation, and policy divergence — continues to shape sentiment across asset classes.”
Geopolitical developments continue to act as the dominant catalyst influencing global and regional markets, eToro said.
A credible ceasefire could trigger a broad unwinding of risk premiums across crude oil, equities, insurance and logistics. In such a scenario, the UAE’s structural strengths — including its position as a regional hub, robust infrastructure and sovereign stability — could support a sharp recovery, eToro said.
Until then, markets are expected to remain in a holding pattern — supported, but not fully secure; resilient, but not yet positioned for a decisive upward move, eToro said in its outlook for this month.
In this environment, strategy is becoming as critical as overall market direction. Position sizing, diversification, and margin management are increasingly essential tools for navigating markets shaped by volatility, policy uncertainty, and geopolitical risk, eToro added.
