Today's Edition
A. SREENIVASA REDDY (ABU DHABI)
UAE stock markets traded in negative territory on Monday due to a resurgence of tensions near the Strait of Hormuz.
The ADX General Index (FADGI) fell 0.799% to close at 9,841.72. Trading activity remained robust, with 25,562 trades involving 448 million shares valued at Dh1.155 billion. The total market capitalisation of ADX-listed stocks stood at Dh2.833 trillion.
Abu Dhabi National Insurance (ADNIC) bucked the market trend to report a gain of 4.96%. BILDCO (Abu Dhabi National Company for Building Materials) also defied the downturn, jumping almost 15% after issuing a statement confirming the uninterrupted continuity of its operational and industrial activities despite the geopolitical challenges. Additionally, United Arab Bank gained 0.75%.
The majority of blue chips reported negative trading following a period of gains in recent days. Realty giant lost 2.71% while holding companies 2PointZero and Alpha Dhabi slipping 3.18% and 2.99%, respectively.
Banking stocks also showed subdued performance: Abu Dhabi Commercial Bank slipped 1.68%, First Abu Dhabi Bank lost 1.28%, and Abu Dhabi Islamic Bank declined 0.84%.
ADNOC-listed companies followed the broader market sentiment, with almost all shedding value. ADNOC Logistics and Services lost 2.18%, ADNOC Drilling shed 1.87%, ADNOC Gas declined 1.54%, and ADNOC Distribution reported a moderate loss of 0.53%. Fertiglobe lost 0.94%, while Borouge traded flat at Dh2.56 per share.
In Dubai, the Dubai Financial Market (DFM) General Index (DFMGI) lost 2.093% to close at 5,862.11, ending four consecutive sessions of gains.
The session recorded 20,124 trades, with 265 million shares traded for a total value of Dh980 million. Market breadth was significantly negative, with two gainers, 49 decliners, and three unchanged stocks.
Emaar and Emaar Development, the sister real estate companies, declined 1.56% and 2.56%, respectively, while Deyaar lost over 4.45%. Emirates NBD and Dubai Islamic Bank both declined more than 2%, contributing to the fall in the main DFM index.
Air Arabia also lost nearly 3% amid concerns over possible disruptions to travel. Additionally, road toll operator Salik lost 2.89%, while utility major DEWA declined 0.73%.
Aramex and Agility Global, both belonging to the logistics sector, were the only two gainers at the DFM.
“Investor sentiment remained cautious despite hopes for diplomatic talks ahead of the fragile ceasefire expiry, as tensions linked to the broader Middle East conflict persisted,” said Adam Vettese, market analyst at eToro.
Regarding the ADX, which proved relatively more resilient with a fall of 0.8%, Vettese noted: “The sell-off may well be short-term risk aversion rather than a fundamental shift.”
“Any breakthrough in de-escalation talks could aid a swift recovery. Markets are expected to remain volatile, with investors keenly watching global oil flows and diplomatic updates,” Vettese added.
