Today's Edition
A. SREENIVASA REDDY (ABU DHABI)
UAE stock markets staved off severe selling pressure on Tuesday amid a deteriorating regional environment, the threat of a September interest-rate increase and a global bond sell-off.
The ADX General Index (FADGI) fell 0.33% to close at 9,974.41. The session recorded 26,637 trades involving 516 million shares worth Dh1.33 billion. The total market capitalisation of ADX-listed companies stood at Dh2.608 trillion.
Abu Dhabi National Company for Building Materials (BILDCO) was the day’s top performer after shareholders approved a change in the company’s name at a general assembly meeting. The new name is Abu Dhabi National Investment and Development (ADID).
Eshraq Investments was another top performer on the ADX, rising nearly 11%. Space42 also advanced strongly, gaining 3.9%.
Banking stocks delivered a mixed performance, with Abu Dhabi Islamic Bank rising 0.26% and Abu Dhabi Commercial Bank adding 0.13%. However, First Abu Dhabi Bank declined 1.82%.
ADNOC-linked stocks also delivered a mixed performance. ADNOC Distribution rose 1%, while ADNOC Gas lost 0.31%. ADNOC Logistics and Services gained 0.15%, while ADNOC Drilling fell 0.35%. Fertiglobe dropped 0.77%, while Borouge added 0.86%.
Among holding companies, Alpha Dhabi slipped 0.93%, while 2PointZero rose 0.48%. Real estate major Aldar declined 0.39%.
In Dubai, the Dubai Financial Market General Index (DFMGI) fell 0.03% to close at 5,834. The session recorded 22,242 trades, with 226 million shares changing hands for a total value of Dh650 million.
Market breadth was positive, with 25 gainers and 16 decliners, while 12 stocks remained unchanged.
Real estate major Emaar Properties rose 0.19%, while its subsidiary Emaar Development remained unchanged at Dh12.76. Deyaar gained nearly 4%.
Banking stocks came under pressure, with Emirates NBD losing 0.93% and Dubai Islamic Bank falling 1.51%. Mashreq defied the trend to gain 0.55%. Telecom operator du fell 4.23% to Dh10.88.
Road-toll operator Salik remained unchanged at Dh5.40, while talabat was also flat at Dh1.20. Parking operator Parkin gained 2.78%.
The ADX’s decline of about a third of a per cent and the DFM’s nearly flat close demonstrated resilience rather than weakness in the face of a sharp sell-off in global bonds, said Sayed A., Chief Business Officer at Graystone Capital.
“Global long-dated bond yields are at their highest levels since 2008, while the yield on the US 10-year Treasury note has risen to 4.76%, a level last seen in January 2025,” Sayed said.
He said money markets were pricing in a roughly 65% to 70% probability of a US interest-rate increase on September 16, representing a complete reversal of the monetary easing cycle for which investors had positioned themselves at the beginning of the year.
He drew attention to FAB’s 1.82% decline, while the other major Abu Dhabi banks recorded moderate gains. “FAB has the market’s largest investment and treasury book, making it more sensitive to a global bond sell-off. The potential benefit of higher interest rates for its margins would emerge more gradually and only if the anticipated rate increase materialises,” Sayed said.
He attributed du’s 4.23% decline partly to higher bond yields, noting that the stock is held largely as an income investment and offers a dividend yield of close to 6%.
Sayed said Space42’s gain was supported by both technical and fundamental factors.
“The technical factor is the share buyback,” he said, referring to an ADX-approved programme announced on August 14 under which the company can repurchase up to 2.5% of its issued share capital.
Space42 reported a 15% increase in first-half revenue to $260 million and normalised earnings before interest, taxes, depreciation and amortisation of $116 million. It ended the period with more than $1.1 billion in cash and short-term deposits and $6.3 billion in contracted future revenue.The company’s backlog includes a 17-year government contract worth $5.1 billion that runs until 2043.
“In a session in which the market was repricing the cost of money, Space42 offered long-term contracted revenue from a sovereign counterparty, no immediate refinancing requirement, a net cash position and a company repurchasing its own shares. Investors were rewarding precisely those characteristics,” Sayed said.
“Dubai’s positive market breadth, with 25 gainers against 16 decliners despite the index closing marginally lower, indicates that the session was characterised by rotation rather than broad-based selling,” he added.
