Today's Edition
A. SREENIVASA REDDY (ABU DHABI)
UAE stock markets came under pressure again on Monday amid what appeared to be a deteriorating geopolitical environment.
The ADX General Index (FADGI) fell 0.526% to close at 9,787.94. Trading activity remained robust, with 23,460 trades involving 358 million shares valued at Dh926 million. The total market capitalisation of ADX-listed stocks stood at Dh2.848 trillion.
Most blue-chip stocks traded in negative territory, with Space42 the lone major gainer, rising 4.17%.
Banking stocks came under moderate to heavy selling pressure. Abu Dhabi Islamic Bank lost 0.78%, Abu Dhabi Commercial Bank slipped 0.43%, while First Abu Dhabi Bank fell more than 2%.
Most ADNOC-linked stocks traded flat, except Fertiglobe, which jumped more than 3% to Dh3.39. ADNOC Distribution, ADNOC Logistics and Services, and ADNOC Gas closed unchanged from their previous levels. ADNOC Drilling lost 0.32% despite announcing what appeared to be promising results, while Borouge declined 0.4%.
Holding company Alpha Dhabi fell 0.68%, while 2PointZero remained unchanged at Dh2.08.
Real estate major Aldar bore the brunt of the selling pressure, declining 2.35%.
In Dubai, the Dubai Financial Market (DFM) General Index (DFMGI) dropped 1.39% to close at 5,820.18. The session recorded 15,259 trades, with 201 million shares changing hands for a total value of Dh627 million. Market breadth remained positive, with 15 gainers, 32 decliners and eight stocks unchanged.
Real estate giants Emaar Properties and Emaar Development led the market decline, falling 1.78% and 2.11%, respectively.
Emirates NBD lost 1.56%, while Dubai Islamic Bank gained 1.24%.
Sharjah-based carrier Air Arabia fell more than 2% amid fresh concerns over travel disruptions. Road toll operator Salik declined 1.72% after declaring its first-quarter results. Parking operator Parkin lost 1.47%, while utility major DEWA slipped 1.39%.
“UAE equity markets retreated as geopolitical tensions escalated after the US rejected Iran’s latest ceasefire proposal,” Adam Vettese, Market Analyst at eToro, said.
A spike in oil prices offered some support, helping ADNOC-linked stocks show relative resilience, Vettese said.
“While property names bore the brunt of selling pressure, the energy sector’s defensive tone helped limit broader losses. Volatility is likely to persist until diplomatic progress materialises,” he added.
Investors are awaiting greater clarity on the US-Iran standoff and its potential impact on energy flows, Vettese said.
“While relative calm has offered some support to sentiment, the lack of progress in US-Iran talks is keeping investors cautious and could weigh on stocks,” Joseph Dahrieh, Managing Director at Tickmill, told Reuters
