Today's Edition
A. SREENIVASA REDDY (ABU DHABI)
UAE stock markets came back blazing, as the US-Iran ceasefire triggered positive sentiment across global markets.
The ADX General Index (FADGI) rose 2.846% to close at 9,868.93. Trading activity remained robust, with 48,394 trades involving 589 million shares valued at Dh2.589 billion. The total market capitalisation of ADX-listed stocks stood at Dh2.843 trillion.
Banking stocks led the ADX rally, with Abu Dhabi Islamic Bank rising by 10.48%. Abu Dhabi Commercial Bank and First Abu Dhabi Bank rose by more than 5%.
Real estate major Aldar was back in action, gaining more than 10% and emerging as the most traded stock by volume.
Holding company 2PointZero gained 8.33%, while Alpha Dhabi rose 2.7%.
ADNOC-listed companies also followed the market rally and posted substantial gains. ADNOC Gas, the most popular stock on ADX, rose 3.47%. ADNOC Logistics and Services gained an impressive 5.02%, while ADNOC Drilling and ADNOC Distribution rose 3.73% and 3.74%, respectively. Borouge increased 2.71% despite recent incidents that affected its operations during the crisis.
Fertiglobe, which had gained during the market declines, posted a loss of 1.29%.
In Dubai, the Dubai Financial Market (DFM) General Index (DFMGI) surged 6.909% to close at 5,777.47. The rally in the main index is said to be the biggest intraday gain in six years.
The session recorded 40,037 trades, with 626 million shares traded for a total value of Dh2.423 billion. Market breadth included 49 gainers, no decliners, and four unchanged stocks.
Almost all stocks traded in positive territory, with none recording losses.
Real estate giants Emaar and Emaar Development led the rally, gaining 12.96% and 11.31%, respectively.
Banking majors Emirates NBD and Dubai Islamic Bank added to the momentum, rising 10.67% and 6.04%, respectively.
Toll operator Salik and Sharjah-based carrier Air Arabia also participated in the rally, posting gains of more than 10%.
Deyaar, a second-tier real estate player, also notched gains of more than 10%, reflecting how strongly the real estate sector responded to the geopolitical breakthrough.
“The prospect of de-escalation has sent a wave of confidence flooding back into local equities, sparking a broad-based recovery and lifting trading volumes across both bourses,” said Adam Vettese, Market Analyst at eToro.
The outcome of key diplomatic talks scheduled later this week will be crucial to sustaining this positive momentum and preventing any swift reversal, Vettese added.
Crude oil prices saw a sharp correction, falling approximately 16% to below $100 per barrel, as markets began pricing in the reopening of the Strait of Hormuz. “It goes to show how much geopolitical risk was baked into crude, and how quickly it can unwind when there's a credible path to de-escalation,” said Josh Gilbert, Market Analyst at eToro.
The positive sentiment extended across asset classes, with equity futures surging and gold climbing above $4,800, reflecting both renewed risk appetite and continued demand for safe-haven assets. “This was a market that had been starved of good news,” Gilbert added.
Gilbert noted that lower oil prices are broadly supportive for global markets, easing pressure on consumers, moderating inflation expectations, and removing a key headwind that has weighed on equities in recent weeks.
“We are not out of the woods (or the Straits) yet. A temporary pickup in shipping is not the same as a predictable normalisation of energy flows over coming months,” said Elliot Hentov, Chief Macro Policy Strategist at State Street Investment Management.
Hence, risk premia should not over-compress unless there are signs of mutual concessions on the geopolitical front, which would buttress confidence in a lasting ceasefire, Hentov added.
