Today's Edition
A. SREENIVASA REDDY (ABU DHABI)
UAE stock markets continued their retreat on Tuesday amid what appeared to be a stalemate in the regional situation, after recovering substantial ground in the wake of a tentative agreement between the US and Iran.
The ADX General Index (FADGI) fell 0.359% to close at 9,804.16. Trading activity remained strong, with 23,000 trades involving 261 million shares valued at Dh1.03 billion. The total market capitalisation of ADX-listed stocks stood at Dh2.880 trillion.
Almost all blue-chip stocks traded lower. Among banking stocks, First Abu Dhabi Bank dropped 0.7%, while Abu Dhabi Islamic Bank lost 0.29%. Abu Dhabi Commercial Bank also slipped 0.28%.
ADNOC-linked stocks performed better when compared to the broader market trend. ADNOC Logistics and Services continued its rally with a 0.5% rise after upgrading its guidance for this year. ADNOC Gas managed to record a 0.29% gain, while ADNOC Drilling dropped 1.21%. ADNOC Distribution slipped 0.51%.
Borouge traded flat at Dh2.55 for the second day, while Fertiglobe rose 0.73%.
NMDC Energy, which is closely linked to the oil and gas industry, posted a 2.76% gain. Oras Construction, an EPC contractor, rose 3.77%, bringing some respite amid the broader market decline.
Holding company Alpha Dhabi traded flat at Dh7.91. Another holding company, 2PointZero, lost 1.8%, with its share price reaching Dh2.14.
Realty giant Aldar also followed the broader market trend, dropping 2.13%.
In Dubai, the Dubai Financial Market General Index (DFMGI) fell 0.63% to close at 5,955.58. The session recorded 17,743 trades, with 173 million shares changing hands for a total value of Dh831 million. Market breadth remained negative, with 14 gainers, 26 decliners and nine stocks unchanged.
Real estate heavyweights Emaar and Emaar Development led the market fall, with the former losing 1.91% and the latter dropping 0.58%.
Emirates NBD lost 1.19% and Dubai Islamic Bank dropped 0.67%, adding to the downward trend. Bloomberg said in a news report that Emirates NBD is planning to buy HSBC’s Turkish assets. This comes after it took over a 60% stake in India’s RBL Bank at a cost of around $3 billion.
Utility provider DEWA traded flat at Dh2.78, while road toll operator Salik also traded flat at Dh5.88.
Etihad Energy, the rebranded version of erstwhile Gulf Navigation, gained 2.09% after the loss in the previous session. Food delivery app Talabat rose 0.82%.
Telecom giants e& and du lost 0.93% and 1.2%, respectively, after a good run in recent sessions.
Despite broader market weakness, underlying fundamentals remain relatively resilient, with selective buying evident in energy-linked and defensive names, said Milad Azar, Market Analyst at XTB MENA.
“NMDC Energy’s advance and the continued strength in ADNOC-related stocks suggest investors are rewarding companies with solid earnings visibility, while Talabat’s gain highlights confidence in resilient consumer-driven growth despite cautious market sentiment,” Azar said.
The recent pullback appears driven more by profit-taking and geopolitical uncertainty than by a deterioration in corporate fundamentals, Azar said.
“As volatility subsides, investors are likely to refocus on earnings quality, infrastructure spending and strategic expansion, which should continue supporting fundamentally strong UAE companies,” Azar added.
