Today's Edition
A. SREENIVASA REDDY (ABU DHABI)
The UAE’s decision to exit OPEC and OPEC+ sparked a surge in ADNOC-related stocks, boosting the indices of the Abu Dhabi Securities Exchange (ADX).
The ADX General Index (FADGI) rose 0.668% to close at 9,901.24. Trading activity remained robust, with 40,299 trades involving 782 million shares valued at Dh2.24 billion — an unusually high figure given the absence of any declared bulk trades. The total market capitalisation of ADX-listed stocks stood at Dh2.862 trillion.
ADNOC-linked stocks gained strong momentum, with the UAE’s OPEC move seen as likely to boost investment and expand production capacity across the oil sector.
ADNOC Drilling rose 8.07%, while ADNOC Logistics and Services advanced 7.84%. ADNOC Gas gained 3.74%, while ADNOC Distribution saw a relatively moderate increase of 0.54%.
Fertiglobe surged 10.32% after reporting strong first-quarter results. BoFA Securities said its EBITDA of $342 million was 11% ahead of its estimate and 8% above consensus. It maintained a buy rating with a price target of Dh3.9 per share. The stock closed at Dh3.74 on Wednesday.
Another ADNOC-related company, Borouge, posted a modest gain of 0.4%.
Alpha Dhabi was another notable performer, rising 1.58%, while 2PointZero gained 1.45%. Food and beverage operator Americana Restaurants jumped 12.3% after reporting first-quarter results that showed a sharp increase in profits, driven by strong same-store sales and portfolio expansion across MENA.
Among the laggards, Aldar declined nearly 1%, while Orascom Construction fell 3.43% after its strong performance in the previous session.
In contrast to the ADX, the Dubai Financial Market (DFM) remained subdued. The DFM General Index (DFMGI) edged up 0.059% to close at 5,861.3. The session recorded 20,106 trades, with 263 million shares changing hands for a total value of Dh829 million. Market breadth remained weak, with 30 gainers, 15 decliners, and eight stocks unchanged.
Emaar fell 1.44%, while its sister unit, Emaar Development, slipped 0.66%.
Emirates NBD declined 0.81%, while Dubai Islamic Bank dropped 1.24%. Air Arabia rose 0.39%.
Road toll operator Salik gained 1.95%, while utility major DEWA remained flat at Dh2.68 per share.
“Sentiment was buoyed by strong corporate earnings and significant gains in ADNOC-linked companies following the UAE’s landmark announcement to exit OPEC,” said Adam Vettese, Market Analyst at eToro.
“The move grants Abu Dhabi greater autonomy over its production strategy amid evolving global energy dynamics, supporting its national economic priorities,” he added.
“The UAE’s exit from OPEC was interpreted by investors as a strategic shift towards greater production flexibility and faster energy-sector expansion,” said Milad Azar, Market Analyst at XTB MENA.
Markets quickly priced in the potential benefits for ADNOC-linked companies, with drilling, gas and logistics stocks outperforming as investors anticipate higher capital spending, stronger volumes and improved long-term earnings visibility, Azar said.
“The strength in the ADX highlights confidence that Abu Dhabi can leverage its low-cost production base while advancing broader economic diversification,” he said.
“The move may also enhance sovereign revenue optionality during periods of supportive oil prices,” Azar added.
In contrast, Dubai traded cautiously, indicating that the rally was largely driven by energy-specific optimism rather than broad-based market momentum, he noted.
