Today's Edition
A. SREENIVASA REDDY (ABU DHABI)
UAE stock markets fell on Wednesday as investors responded to renewed tensions in the Middle East and US President Donald Trump’s statement that the deal with Iran was over.
The ADX General Index (FADGI) fell 0.564% to close at 9,885.05. Trading activity remained strong, with 27,973 trades involving 305 million shares valued at Dh1.33 billion. The total market capitalisation of ADX-listed stocks stood at Dh2.895 trillion.
Almost all blue-chip stocks traded in negative territory amid what appeared to be a deteriorating geopolitical situation.
The banking sector stayed relatively resilient, with Abu Dhabi Islamic Bank closing the day unchanged. First Abu Dhabi Bank suffered a minor loss of 0.112%, while Abu Dhabi Commercial Bank bore the brunt with a loss of 1.46%.
ADNOC-linked stocks posted a largely negative performance. ADNOC Distribution fell 0.76%, a day after the company announced its deal with Shell to acquire assets in South Africa. ADNOC Gas fell 0.58%, while ADNOC Drilling lost 0.7%.
ADNOC Logistics and Services fell 1.34%. Fertiglobe bucked the trend, jumping 3.077%, while Borouge followed the broader market trend and lost 0.79%.
Investment holding company 2PointZero fell 1.84% to reach Dh2.13. Another holding company, Alpha Dhabi, also lost 3.5%, adding to the pressure on the market.
Realty giant Aldar continued to show weakness, losing 1.23%.
Abu Dhabi National Insurance and Presight were among the few stocks that gained nearly 1%, beating the broader market trend.
In Dubai, the Dubai Financial Market General Index (DFMGI) fell 1.51% to close at 6,001.93. The session recorded 16,930 trades, with 309 million shares changing hands for a total value of Dh1.01 billion. Market breadth was negative, with seven gainers, 42 decliners and four stocks unchanged.
Real estate heavyweights Emaar and Emaar Development diverged, with the former losing nearly 1% and the latter remaining unchanged.
Emirates NBD lost 0.07%, while Dubai Islamic Bank dropped 0.92%.
Telecom company du also came under pressure, losing 4.23% after its recent strong run.
Utility provider DEWA lost 1.78%, while road toll operator Salik fell 2.73%. Supermarket giant Spinneys lost 2.34%.
Food delivery app Talabat was also among the major decliners, losing 4.8% and coming close to the 5% lower limit.
Geopolitical developments have once again become the dominant driver of market sentiment, overshadowing otherwise supportive fundamentals, said Milad Azar, Market Analyst, XTB MENA.
“The broad-based decline across UAE equities reflects investors’ shift towards risk reduction after renewed regional tensions and uncertainty surrounding US-Iran diplomacy,” Azar said.
Despite the pullback, resilient banking stocks and selective gains in defensive names suggest that investors are repositioning rather than exiting the market entirely, Azar said.
“If geopolitical risks begin to ease, attention is likely to return to corporate earnings, strong liquidity and the UAE’s solid economic backdrop, which should help support a recovery in valuations,” Azar noted.
