Today's Edition
A. SREENIVASA REDDY (ABU DHABI)
UAE stocks delivered a stable performance on Wednesday, even though gains in several major companies failed to prevent declines in the benchmark indices as banking stocks lagged. Geopolitical uncertainty remained a significant drag on the markets.
The ADX General Index (FADGI) fell 0.134% to close at 9,771.47. Trading activity remained strong, with 18,931 trades involving 259 million shares worth Dh882 million. The total market capitalisation of ADX-listed companies stood at Dh2.864 trillion.
Banking stocks held back the main index, with all three major lenders trading in negative territory. Abu Dhabi Commercial Bank lost more than 1.25%, Abu Dhabi Islamic Bank dropped 0.68% and First Abu Dhabi Bank slipped 0.77%.
ADNOC-linked stocks maintained their positive momentum after the parent company announced its final investment decision (FID) on the $6.2 billion Umm Shaif Gas Cap project.
ADNOC L&S rose 1.28%, while ADNOC Distribution gained 1.02%. ADNOC Gas advanced 0.3%, while ADNOC Drilling remained unchanged at Dh5.67. Borouge and Fertiglobe gained 0.42% and 1.52%, respectively.
Holding company Alpha Dhabi advanced 0.54%, while another holding company, 2PointZero, remained unchanged at Dh2.09.
Real estate major Aldar rose 0.79% after launching the Dh100 billion Marsa Al Saadiyat project. The developer has also launched several other projects in recent days, indicating growing momentum in the sector.
AD Ports, another state-linked company, rose 1.63%. Hospital group Burjeel Holdings gained 1.72%, while supermarket operator Lulu Retail lost 0.52%.
Crypto miner-turned-data centre infrastructure company Phoenix Group suffered a sharp fall of nearly 5% as the company seeks to reinvent itself.
In Dubai, the Dubai Financial Market General Index (DFMGI) fell 0.466% to close at 5,785.31. The session recorded 11,236 trades, with 129 million shares changing hands for a total value of Dh402 million. Market breadth was negative, with 12 gainers, 27 decliners and 12 stocks unchanged.
Real estate majors Emaar Properties and Emaar Development posted gains, with the former rising 0.72% and the latter advancing 1.4%.
Dubai’s major banking stocks weakened. Emirates NBD dropped 1.68%, while Dubai Islamic Bank remained unchanged at Dh7.34.
Utility provider DEWA lost 2.21%, while road-toll operator Salik slipped 1.8%, adding to the pressure on the main index. Rebranded Etihad Energy advanced 1.06%.
Food-delivery company talabat lost 0.89%. Air Arabia dropped 0.82% amid renewed concerns about travel disruptions.
Geopolitical uncertainty continues to limit risk appetite, but the resilience of ADNOC-linked companies and Aldar suggests that investors remain willing to back sectors supported by long-term investment and government-led growth, Milad Azar, Market Analyst at XTB MENA, said.
“The weakness in banking stocks weighed disproportionately on the indices, masking selective strength across energy, logistics and real estate,” Azar said.
Despite the softer performance of the benchmark indices, market activity remained healthy, indicating that investors are rotating into companies with visible earnings catalysts rather than exiting the market, Azar noted.
“Sustained project announcements and infrastructure spending should continue to underpin sentiment, although regional developments will likely dictate the broader market direction in the near term,” Azar added.
