Today's Edition
A. SREENIVASA REDDY (ABU DHABI)
UAE stock markets reacted positively to encouraging developments on the geopolitical front, with equities staging a strong rally at the opening on Monday before giving up part of the gains later in the session.
The ADX General Index (FADGI) rose 0.453% to close at 9,701.92. Trading activity remained robust, with 26,850 trades involving 710 million shares valued at Dh2.84 billion.
The total market capitalisation of ADX-listed stocks stood at Dh2.835 trillion. Two bulk trades worth Dh187 million involving shares of Gulf Medical Projects Company were reported.
Banking stocks delivered a mixed performance, with Abu Dhabi Islamic Bank advancing 4.8% while Abu Dhabi Commercial Bank gained 2.09%. First Abu Dhabi Bank, however, bucked the trend and slipped 0.71%.
ADNOC-linked stocks mostly posted strong gains, with ADNOC Logistics and Services adding 3.28% while ADNOC Gas rose 2.39%. ADNOC Distribution gained more than 2%, while ADNOC Drilling remained flat at Dh5.96. Borouge gained 0.8%, while Fertiglobe declined 3.18% to close at Dh3.35.
Holding company 2PointZero rose 1.43% to Dh2.13, while Alpha Dhabi gained 1.81%. Real estate major Aldar added 0.39%.
Crypto miner-turned-data centre operator Phoenix Group continued its decline, falling 4.14%.
In Dubai, the Dubai Financial Market (DFM) General Index (DFMGI) climbed 1.13% to close at 5,757.48. The session recorded 22,097 trades, with 577 million shares changing hands for a total value of Dh1.8 billion. Market breadth remained positive, with 33 gainers, 12 decliners and eight stocks unchanged.
Real estate heavyweights Emaar and Emaar Development led the market rally, rising 2.61% and 4.19%, respectively.
Food delivery platform Talabat surged nearly 13% after its parent company Delivery Hero confirmed a takeover approach from US ride-hailing firm Uber. Delivery Hero, which is listed on Germany’s MDAX index, said Uber had approached it with an offer of €33 ($38) per share for a full takeover. The stock jumped as much as 9% to €36.69 on Monday, giving the company a market value of more than €11 billion ($12.8 billion). Uber is already a significant shareholder in Delivery Hero.
Emirates NBD traded flat at Dh27.62, while Dubai Islamic Bank gained 1.09%.
Road toll operator Salik declined 1.84%. Sharjah-based carrier Air Arabia slipped 0.62%, while DEWA fell 0.38%.
ALEC Holdings jumped nearly 9% after securing the contract for the $1.7 billion Sphere Abu Dhabi project. Dubai Residential REIT and Tabreed were among several prominent stocks that gained more than 5%.
“UAE equity markets closed the final pre-Eid session on a positive note, supported by ongoing progress in US-Iran peace negotiations,” Nagham Hassan, Market Analyst at eToro, said.
Property stocks on the DFM continued to recover, although they remain some distance away from a significant rebound, Hassan said, adding that the DFM pared some of its earlier gains by the close.
“With markets closed until June 1, investors will be monitoring closely for any formal ceasefire announcement that could provide further impetus on reopening day,” Hassan observed.
