Today's Edition
A. SREENIVASA REDDY (ABU DHABI)
UAE stock markets stayed resilient and made marginal gains on Tuesday despite the continuing standoff over reopening the Strait of Hormuz.
The ADX General Index (FADGI) rose 0.215% to close at 10,098.28. The session recorded 24,743 trades involving 413 million shares worth Dh1.325 billion. The total market capitalisation of ADX-listed companies stood at Dh2.939 trillion.
AD Ports Group rose nearly 3% a day after L’IMAD Holding announced its intention to make a voluntary cash offer to acquire the company’s remaining shares. The proposed offer of Dh6.25 per share represents a 23% premium to AD Ports’ closing price of Dh5.10 on August 14. The AD Ports price has reached Dh6.03 at the close of Tuesday session.
Banking stocks posted a mixed performance, with Abu Dhabi Islamic Bank rising 1.12% while Abu Dhabi Commercial Bank and First Abu Dhabi Bank slipped 0.5%.
ADNOC-linked stocks delivered a stellar performance with all except Borouge reporting gains. ADNOC Drilling advanced 1.51% while ADNOC Logistics and Services rose 0.9%.
ADNOC Distribution advanced 0.74% while ADNOC Gas rose 0.3%. Fertiglobe advanced 1.97% while Borouge declined 0.82%.
Holding company Alpha Dhabi declined 0.26%, while 2PointZero stayed unchanged at Dh2.02.
Real estate major Aldar remained advanced 0.79%. The UAE telecom major e& rose 3.87% while Americana Restaurants jumped 4.62%.
In Dubai, the Dubai Financial Market General Index (DFMGI) rose 0.037% to close at 5,858.28. The session recorded 13,612 trades, with 128 million shares changing hands for a total value of Dh533 million.
Market breadth was positive, with 22 gainers, 17 decliners and 13 stocks unchanged.
Real estate majors Emaar Properties and Emaar Development pulled in opposite directions, with the former rising 0.18% and the latter losing 0.3%.
Banking stocks delivered a mixed performance. Emirates NBD rose 1.79% while Dubai Islamic Bank declined 0.13%.
Road-toll operator Salik fell 0.19%, while food-delivery company talabat rose 1.68%. Air Arabia declined 0.41%, while telecom operator du lost 3.10%.
Emirates NBD and Emaar appears to have kept the main index in positive territory despite selling pressure across sectors.
The UAE market displayed noteworthy resilience, particularly given the continuing uncertainty surrounding the Strait of Hormuz, Sayed A., Chief Business Officer at Graystone Capital, said.
“Tuesday’s session was constructive but defensive, with liquidity remaining in UAE equities but becoming concentrated in strategic assets, cash-generative businesses and companies with strong earnings visibility,” he added.
The clearest stock-specific story remained AD Ports, which closed at Dh6.03, about 3.5% below the proposed cash offer price of Dh6.25 after rising approximately 18% from the Dh5.10 reference price, Sayed said.
ADNOC-linked stocks continued to attract buying, supported by ADNOC Distribution and ADNOC Drilling having reported record profits for the first half of the year, he added.
“In Dubai, Emirates NBD is doing exactly what a heavyweight index constituent should do in this environment, gaining 1.79% and helping offset weakness elsewhere,” Sayed said.
Emaar Properties remained fundamentally supported by exceptional underlying demand, while declines in du and Air Arabia indicated that investors were still selective, he added.
