Today's Edition
A. SREENIVASA REDDY (ABU DHABI)
UAE stock markets consolidated the previous session’s gains on Wednesday, with both benchmark indices closing higher and most major stocks remaining broadly stable.
The ADX General Index (FADGI) rose 0.096% to close at 10,111.34. The session recorded 28,652 trades involving 334 million shares worth Dh1.544 billion. The total market capitalisation of ADX-listed companies stood at Dh2.938 trillion.
Banking stocks remained stable, with Abu Dhabi Islamic Bank unchanged at Dh23.5. First Abu Dhabi Bank added 0.1%, while Abu Dhabi Commercial Bank lost 0.26%.
ADNOC-linked stocks were mostly steady to lower. ADNOC Drilling lost 0.33%, while ADNOC Gas remained unchanged at Dh3.37. ADNOC L&S slipped 0.32%. ADNOC Distribution lost 0.73% on the day it reported record first-half results, suggesting that the strong performance may already have been priced into the stock. Borouge lost 0.41%, while Fertiglobe declined 0.39%.
Holding company Alpha Dhabi lost 1.98% following its recent gains, while 2PointZero added 0.5%. Real estate major Aldar extended the previous session’s gains, rising 1.78%. Telecoms group e& remained unchanged at Dh21. Eshraq Investments, Waha Capital and United Arab Bank were among the stocks that gained more than 3%.
In Dubai, the Dubai Financial Market General Index (DFMGI) rose 0.364% to close at 6,007.85, crossing the important 6,000 mark. The session recorded 13,768 trades, with 194 million shares changing hands for a total value of Dh682 million. Market breadth was positive, with 29 gainers, 12 decliners and 10 stocks unchanged.
Real estate majors Emaar Properties and Emaar Development led the market, with the former rising 1.36% and the latter adding 1.17%.
Banking stocks posted gains, with Emirates NBD rising 0.25%, while Dubai Islamic Bank added 0.79%.
Road toll operator Salik gained 0.18%, while food delivery company talabat slipped 0.9%. Air Arabia advanced 0.94% amid improving sentiment towards regional travel. Telecoms operator du lost 0.82%.
Wednesday’s session reinforced the view that UAE equities are entering a phase in which fundamentals, rather than momentum alone, are driving capital allocation, Sayed A., Chief Business Officer at Graystone Capital, said.
“The ADX maintained its position comfortably above the 10,100-point mark despite measured profit-taking across several energy and industrial counters, indicating that institutional investors remain constructive on the market’s medium-term outlook,” Sayed said.
The muted reaction to ADNOC Distribution’s record first-half earnings was particularly noteworthy, as it suggested that the market was becoming increasingly valuation-conscious rather than simply chasing headline results, he said.
“This is a hallmark of a maturing exchange, where earnings quality and forward guidance carry greater weight than short-term surprises,” Sayed added.
Dubai’s move above the 6,000-point level was arguably the more significant milestone, he said. “The advance was supported by leadership from real estate and banking rather than speculative trading, highlighting continued confidence in the emirate’s economic trajectory,” Sayed said.
The positive market breadth was also encouraging, with gains extending beyond index heavyweights into mid-cap stocks, suggesting that investor participation was broadening rather than remaining concentrated in a handful of blue-chip companies, he added.
Looking ahead, Sayed said the UAE remained one of the strongest investment stories within emerging markets. “Oil market developments, disciplined fiscal policy, continued sovereign-led investment and expectations of a more accommodative global monetary environment are creating a supportive backdrop for regional equities,” he said.
“If upcoming corporate earnings continue to validate current valuations, both the ADX and DFM appear well placed to sustain their upward trajectory through the second half of the year,” Sayed added.
