Today's Edition
A. SREENIVASA REDDY (ABU DHABI)
UAE stock markets retreated on Wednesday amid a fresh escalation in regional tensions, with most blue-chip stocks heading south even as the non-oil PMI posted a marginal increase, signalling continued expansion.
The ADX General Index (FADGI) fell 0.406% to close at 9,582.12. Trading activity remained robust, with 26,182 trades involving 303 million shares valued at Dh1 billion. The total market capitalisation of ADX-listed stocks stood at Dh2.784 trillion.
Banking stocks remained relatively resilient amid the broader market decline. Abu Dhabi Commercial Bank bucked the trend with a gain of 1.37%. Abu Dhabi Islamic Bank traded flat at Dh19.5, while First Abu Dhabi Bank saw a marginal fall of 0.12%.
ADNOC-linked stocks also bore the brunt of the negative sentiment, with ADNOC Logistics and Services losing 3.4%. ADNOC Drilling fell 1.21%, while ADNOC Distribution shed 0.79%. ADNOC Gas also lost 0.61%. Borouge dropped 0.8%, while Fertiglobe fell 2.91% to close at Dh3.
Holding company 2PointZero lost 2.35%, while Alpha Dhabi declined 3.41%. Realty giant Aldar fell 1.06%, signalling strong negative sentiment across the market.
In Dubai, the Dubai Financial Market (DFM) General Index (DFMGI) fell 0.8% to close at 5,686.41. The session recorded 17,356 trades, with 222 million shares changing hands for a total value of Dh708 million. Market breadth remained negative, with seven gainers, 33 decliners and 13 stocks unchanged.
Real estate heavyweights Emaar and Emaar Development fell 2.44% and 1.75%, respectively. Emirates NBD gained 0.22%, while Dubai Islamic Bank lost 2.44%.
Road toll operator Salik lost 0.71%, ending its recent run of gains. Sharjah-based carrier Air Arabia traded flat at Dh4.73, while DEWA fell 0.39%.
“UAE equities remain highly sensitive to geopolitical headlines, and Wednesday’s decline reflects a risk-off mood rather than any deterioration in domestic fundamentals,” Milad Azar, Market Analyst at XTB MENA, said.
Azar said the slight improvement in the non-oil PMI suggests that economic activity remains resilient, while robust trading volumes indicate that investors are repositioning rather than exiting the market entirely.
“The relative strength of banking stocks, particularly ADCB, highlights continued confidence in earnings quality and liquidity conditions,” Azar said.
However, weakness across ADNOC-linked names, real estate stocks and major holding companies such as Alpha Dhabi point to broader caution, he added.
“Near term, regional developments are likely to remain the dominant driver of market direction despite supportive economic indicators,” Azar said.
