Today's Edition
A. SREENIVASA REDDY (ABU DHABI)
UAE stock markets remained relatively stable amid robust but volatile trading on Monday following a marked deterioration in the regional geopolitical situation.
The ADX General Index (FADGI) fell 0.369% to close at 10,007.44, managing to remain above the crucial 10,000 mark. The session recorded 24,732 trades involving 389 million shares worth Dh1.93 billion, representing an above-average daily trading value.
The total market capitalisation of ADX-listed companies stood at Dh2.913 trillion.
Banking stocks bore the brunt of the volatile trading, with Abu Dhabi Islamic Bank losing 3.29% and Abu Dhabi Commercial Bank dropping 1.69%. However, First Abu Dhabi Bank bucked the trend with a gain of 0.61%.
ADNOC-linked stocks delivered a mixed performance, with ADNOC Logistics and Services rising 3.14% and ADNOC Gas gaining 1.56%. ADNOC Drilling slipped 2.03%, while ADNOC Distribution declined 0.74%. Fertiglobe dropped 0.38%, while Borouge slipped 3.31%.
Among holding companies, Alpha Dhabi slipped 1.17% even as it increased its stake in a private-credit joint venture with Mubadala Capital. 2PointZero rose 0.48% to Dh2.08 after its subsidiary ePointZero announced plans to acquire a controlling stake in an African power infrastructure company.
Real estate major Aldar, which is sensitive to geopolitical developments, slipped 1.67%.
Americana Restaurants jumped 5.65% after it signed an agreement with Yum! Brands to bring Taco Bell, the Mexican-inspired restaurant brand, to the UAE and subsequently to other GCC countries.
In Dubai, the Dubai Financial Market General Index (DFMGI) fell 0.793% to close at 5,836. The session recorded 22,296 trades, with 438 million shares changing hands for a total value of Dh2.2 billion, an unusually high daily trading value.
Market breadth was negative, with 15 gainers and 27 decliners, while 12 stocks remained unchanged.
Real estate major Emaar Properties fell 1.82%, while its subsidiary Emaar Development withstood the volatile trading to remain unchanged at Dh12.76. Another real estate company, Deyaar, fell by more than 4.4%.
Banking stocks followed the broader market trend, with Emirates NBD losing 2.3% and Dubai Islamic Bank falling 1.51%. Mashreq defied the trend to gain 4.27%. Telecom operator du fell 1.56% to Dh11.36.
Road-toll operator Salik gained 0.56%, while food-delivery company talabat fell 3.23%.
Etihad Energy, formerly known as Gulf Navigation Holding, lost 1.58%, while Sharjah-based airline Air Arabia fell 0.2%.
UAE equities showed resilience despite heightened geopolitical risks, with ADX holding just above the psychologically important 10,000 level, said Milad Azar, Market Analyst, XTB MENA, said.
“Elevated turnover suggests that investors remain active, but the sharp divergence across sectors reflects a cautious and selective approach,” Azar said.
Banking stocks faced notable selling pressure, while gains in ADNOC Logistics & Services and ADNOC Gas provided some support, highlighting continued investor preference for companies with strong operational fundamentals, Azar said.
In Dubai, the broader decline and heavy trading volumes pointed to increased risk aversion, particularly towards banking and real estate stocks, Azar said.
However, company-specific developments continued to attract capital, as reflected in the gains made by Americana Restaurants and Mashreq, Azar added.
“Overall, near-term sentiment is likely to remain volatile, with geopolitical developments driving market direction, while company-specific earnings, valuations and strategic announcements should determine relative performance,” Azar said.
