Today's Edition
A. SREENIVASA REDDY (ABU DHABI)
UAE stock markets traded lower on the first day of the week as adverse headlines surrounding the situation in the Middle East continued to weigh on investor sentiment.
The ADX General Index (FADGI) fell 0.326% to close at 9,903.73. Trading activity remained strong, with 23,327 trades involving 232 million shares worth Dh1.16 billion. The total market capitalisation of ADX-listed companies stood at Dh2.9 trillion.
AD Ports Group, ADNOC Logistics & Services and Abu Dhabi National Insurance Company bucked the broader market trend, each posting gains of more than 1%.
The banking sector mirrored the overall market weakness. Abu Dhabi Commercial Bank fell 2.04%, while Abu Dhabi Islamic Bank slipped 0.91%. First Abu Dhabi Bank was unchanged at Dh18.
ADNOC-linked stocks delivered a mixed performance. ADNOC Logistics & Services gained 1.15%, while ADNOC Distribution, ADNOC Drilling and ADNOC Gas closed unchanged at Dh4, Dh5.79 and Dh3.42, respectively. Borouge declined 1.21%, while Fertiglobe lost 0.76%.
Investment holding company 2PointZero slipped 0.46% to Dh2.15. In a stock market disclosure, the company said its free-float stood at 39.05%, with IHC-linked investors holding a 60.57% stake.
Another investment holding company, Alpha Dhabi, also declined, shedding 0.25%.
Real estate major Aldar fell 2.21%, with the property sector remaining among the most sensitive to geopolitical developments.
In Dubai, the Dubai Financial Market General Index (DFMGI) dropped 1.243% to close at 5,967.43. The session recorded 14,611 trades, with 212 million shares changing hands for a total value of Dh707 million. Market breadth was weak, with nine gainers, 36 decliners and seven stocks unchanged.
The DFM came under pressure as key real estate and banking stocks retreated. Emaar Properties and Emaar Development fell 2.19% and 2.85%, respectively.
Emirates NBD lost 2.19%, while Dubai Islamic Bank declined 1.03%.
Utility provider DEWA fell 1.43%, while road toll operator Salik lost 1.75%. Etihad Energy Services, which has attracted increased investor attention following its recent rebranding, slipped 0.35%.
Telecom operator du closed unchanged at Dh12.24.
UAE markets remained under pressure as geopolitical uncertainty continued to drive cautious investor positioning, outweighing supportive oil prices and resilient domestic fundamentals, Milad Azar, Market Analyst, XTB MENA, said.
“Defensive sentiment is evident in the broad-based weakness across banking and real estate, while investors await greater clarity on regional developments before increasing risk exposure,” Azar said.
The outperformance of AD Ports and ADNOC Logistics & Services highlights investors' continued preference for companies with strong earnings visibility and structural growth drivers, Azar said.
“Although near-term volatility may persist, healthy trading volumes suggest institutional participation remains active, providing a foundation for sentiment to recover once geopolitical risks begin to ease,” he added.
