Today's Edition
A. SREENIVASA REDDY (ABU DHABI)
UAE stock markets retreated on Monday as investors remained cautious amid concerns over an “AI tech bubble” and US Fed rate hikes. Just as markets were recovering from the easing of the regional situation, other concerns appear to have come to the fore.
The ADX General Index (FADGI) fell 0.41% to close at 9,839.47. Trading activity remained strong, with 20,638 trades involving 348 million shares valued at Dh909 million. The total market capitalisation of ADX-listed stocks stood at Dh2.886 trillion.
Almost all blue-chip stocks traded lower, with ADNOC Logistics and Services among the exceptions. The stock rose more than 1% after the company upgraded its 2026 guidance.
ADNOC L&S upgraded its net profit guidance for 2026 to “high 60% growth” from “mid-to-high teens” growth. Its EBITDA guidance was updated to “high 20% growth” from “mid-to-high single-digit” growth. “This updated guidance reflects actual performance year-to-date and assumptions for the remainder of the year that reflect ongoing market strength,” the company said in a stock market disclosure.
Among banking stocks, First Abu Dhabi Bank dropped 1.72%, while Abu Dhabi Islamic Bank lost 1.14%. Abu Dhabi Commercial Bank slipped 0.55%.
ADNOC-linked stocks, except ADNOC L&S, also came under pressure.
ADNOC Gas lost 0.29%, while ADNOC Drilling dropped 0.69%. ADNOC Distribution slipped 0.76%. Borouge traded flat at Dh2.55, while Fertiglobe fell 2.49%.
Holding company Alpha Dhabi dropped 0.88%. Another holding company, 2PointZero, lost 1.8%.
Realty giant Aldar also followed the broader market trend, dropping 0.59%.
In Dubai, the Dubai Financial Market General Index (DFMGI) fell 0.42% to close at 5,993.35. The session recorded 10,980 trades, with 103 million shares changing hands for a total value of Dh412 million. Market breadth remained negative, with 14 gainers, 26 decliners and 13 stocks unchanged.
Real estate heavyweights Emaar and Emaar Development led the market fall, with the former losing 0.49% and the latter dropping 1.42%.
Emirates NBD lost 1.12% and Dubai Islamic Bank dropped 1.05%, adding to the downward trend.
Utility provider DEWA bucked the trend and rose 1.09%, while road toll operator Salik gained 0.17%.
Etihad Energy, the rebranded version of erstwhile Gulf Navigation, lost 4.67%, while food delivery app Talabat was down 1.6%.
“UAE equities paused after recent volatility, as global concerns over elevated technology valuations and the possibility of further US Federal Reserve tightening weighed on sentiment,” said Milad Azar, Market Analyst at XTB MENA.
Despite the broad-based decline, resilient trading volumes suggest investors remain engaged, with the pullback appearing more like cautious repositioning than a decisive shift away from regional markets, Azar noted.
“ADNOC L&S stood out after significantly upgrading its 2026 guidance, highlighting strong operational momentum and reinforcing confidence in earnings resilience,” Azar said.
Such company-specific strength could continue attracting selective institutional flows, supporting the view that fundamentally solid UAE companies may outperform once global macro uncertainty and risk sentiment begin to stabilise, Azar added.
