Today's Edition
A. SREENIVASA REDDY (ABU DHABI)
UAE stock markets opened the week on a positive note on Monday, with both Abu Dhabi and Dubai ending in positive territory as the geopolitical atmosphere in the region continued to improve.
The ADX General Index (FADGI) rose 0.189% to close at 10,035.76. Trading activity remained strong, with 23,567 trades involving 423 million shares valued at Dh1.108 billion. The total market capitalisation of ADX-listed stocks stood at Dh2.936 trillion.
Most blue-chip stocks were able to retain their recent gains after the easing of regional tensions.
Banking stocks put up a good show, with Abu Dhabi Islamic Bank gaining 2.06%. Abu Dhabi Commercial Bank gained 0.4%, while First Abu Dhabi Bank added 0.66%.
ADNOC-linked stocks posted a mixed performance, with ADNOC Gas, the most valuable stock in the group, gaining 0.58%. ADNOC Drilling lost 0.67%, while ADNOC Distribution traded flat at Dh3.98. ADNOC Logistics and Services lost nearly 1%, while Fertiglobe declined 0.35%. Borouge added 0.39%.
Holding company 2PointZero, which was bullish in the early hours of trading after FAB gave it a buy rating with a target price of Dh3.30, closed the day unchanged at Dh2.26. Another holding company, Alpha Dhabi, lost 1.23%.
Realty giant Aldar ended flat at Dh8.84 after recent gains, while RAK Properties advanced 1.72%.
In Dubai, the Dubai Financial Market General Index (DFMGI) rose 0.324% to close at 6,183.47. The session recorded 14,040 trades, with 225 million shares changing hands for a total value of Dh714 million. Market breadth remained positive, with 25 gainers, 19 decliners and 10 stocks unchanged.
Emirates NBD gained 1.94%, contributing to the positive momentum in the main index. Dubai Islamic Bank lost 0.26%.
Real estate heavyweights Emaar and Emaar Development pulled in opposite directions, with the former losing 0.46% and the latter gaining 0.8%.
Road toll operator Salik lost 1.18%. Sharjah-based carrier Air Arabia advanced 1.75% as travel is expected to rebound in the Gulf region. DEWA gained 2.13% after announcing the launch of an international arm focused on global power and water projects.
Emirates NBD, DEWA and Air Arabia helped give the main index a decent lift.
“Investors took encouragement from signs that peace negotiations in the region are moving forward following a turbulent end to last week,” said Nagham Hassan, Market Analyst at eToro.
Markets had rallied strongly through much of last week, but Friday saw a reversal as deal talks stalled and uncertainty resurfaced.
“Monday's session reflected a more constructive mood, with the 60-day diplomatic roadmap agreed over the weekend helping restore cautious confidence,” Hassan said.
With negotiations still fluid and Thursday's US inflation data on the horizon, investors are likely to remain cautious but watchful in the sessions ahead, Hassan said.
