Today's Edition
A. SREENIVASA REDDY (ABU DHABI)
UAE stock markets remained subdued on Tuesday as regional uncertainty continued to weigh on business sentiment despite optimism generated by second-quarter results.
The ADX General Index (FADGI) fell 0.104% to close at 9,834.88. The session recorded 19,094 trades involving 153 million shares worth Dh740 million. The total market capitalisation of ADX-listed companies stood at Dh2.874 trillion.
Banking stocks helped limit the decline in the main index, with First Abu Dhabi Bank rising 1.29%. Abu Dhabi Commercial Bank gained 1.09%, while Abu Dhabi Islamic Bank advanced 0.94%.
ADNOC-linked stocks posted a mixed performance. ADNOC Drilling lost 1.03%, while ADNOC Distribution rose 0.75%. ADNOC Gas fell 0.89% and ADNOC L&S lost 0.32%. Fertiglobe advanced 0.38%, while Borouge remained unchanged at Dh2.41.
Alpha Dhabi lost 0.68% to close at Dh7.36, while another holding company, 2PointZero, slipped 0.48% to Dh2.07.
Real estate major Aldar lost 0.13%. Burjeel was among the prominent gainers, rising 1.64%. Crypto mining and data-centre infrastructure company Phoenix Group regained some lost ground with a rise of nearly 3%.
In Dubai, the Dubai Financial Market General Index (DFMGI) fell 0.93% to close at 5,789.73. The session recorded 12,131 trades, with 129 million shares changing hands for a total value of Dh415 million. Market breadth was negative, with nine gainers, 28 decliners and 16 stocks unchanged.
Real estate majors Emaar Properties and Emaar Development recorded substantial losses, with the former slipping 0.89% and the latter shedding 1.93%.
Banking stocks also declined, contributing to the sharp fall in the index. Emirates NBD lost 1.93%, while Dubai Islamic Bank declined 2%.
Utility provider DEWA rose 1.12%, while road-toll operator Salik lost 0.56%. Food-delivery company talabat fell 4.51%, its biggest decline in recent times. Air Arabia rose 1.42%, while telecom operator du lost 0.66%.
Second-quarter earnings continue to provide selective support for UAE equities, with gains in Abu Dhabi banking stocks helping cushion broader market weakness, Milad Azar, Market Analyst at XTB MENA, said.
“Investors remain focused on corporate fundamentals, but persistent regional uncertainty is limiting risk appetite and keeping trading activity relatively subdued despite the healthy balance sheets of leading financial institutions,” Azar said.
The contrasting sectoral performances in Abu Dhabi and Dubai indicated selective positioning, while profit-taking in real estate and some large-cap stocks weighed on sentiment, Azar noted.
“Sustained earnings momentum from banks and improved corporate guidance could support a gradual recovery, provided geopolitical risks ease,” Azar added.
