Today's Edition
A. SREENIVASA REDDY (ABU DHABI)
UAE stock markets came under pressure on Wednesday as the regional situation, the possibility of an interest-rate increase and a global bond sell-off rattled bourses worldwide.
The ADX General Index (FADGI) fell 0.682% to close at 9,906.40. The session recorded 26,251 trades involving 387 million shares worth Dh1.22 billion. The total market capitalisation of ADX-listed companies stood at Dh2.589 trillion. The market capitalisation declined following the formal delisting of Abu Dhabi National Energy Company (TAQA), effective September 1.
Abu Dhabi National Company for Building Materials (BILDCO) continued to rally, rising nearly 5% on Wednesday after shareholders approved a change in the company’s name. The new name is Abu Dhabi National Investment and Development (ADID). Eshraq Investments extended its rally from the previous session, gaining nearly 5%.
Banking stocks bore the brunt of the selling pressure, with Abu Dhabi Islamic Bank losing 1.31% and Abu Dhabi Commercial Bank dropping 0.79%. First Abu Dhabi Bank declined 0.93%.
ADNOC-linked stocks followed the market’s bearish trend. ADNOC Distribution dropped 0.99%, surrendering its gain from the previous session. ADNOC Gas declined 1.24%, while ADNOC Logistics and Services slipped 0.87%. ADNOC Drilling dropped 1.38%, while Borouge lost 0.85%. Fertiglobe bucked the trend with a gain of 0.78%.
Among holding companies, Alpha Dhabi slipped 2.8%, while 2PointZero lost 1.93%. Real estate major Aldar declined 1.57%.
Americana Restaurants declined 3.28% following its recent rally after signing an agreement with a Mexican-inspired restaurant brand. Healthcare major Burjeel fell nearly 4% amid weak market sentiment. Bank of Sharjah bucked the trend with a gain of nearly 6%.
In Dubai, the Dubai Financial Market General Index (DFMGI) fell 0.331% to close at 5,814. The session recorded 20,527 trades, with 250 million shares changing hands for a total value of Dh763 million. Market breadth was negative, with 13 gainers and 31 decliners, while six stocks remained unchanged.
Real estate major Emaar Properties lost 1.66%, while its subsidiary Emaar Development declined 0.63%. Deyaar gained nearly 3%, extending its rally from the previous session.
Banking stocks managed to remain in positive territory, with Emirates NBD gaining 0.6% and Dubai Islamic Bank adding 0.28%. Road-toll operator Salik slipped 1.48%, while talabat remained unchanged at Dh1.20. Parking operator Parkin lost 0.68%.
Telecom operator du gained 1.47%, recovering some of its recent losses. Utility provider DEWA added 0.74%.
UAE equities faced renewed selling pressure as regional uncertainty, expectations of higher interest rates and the global bond sell-off weighed on risk appetite, said Milad Azar, Market Analyst at XTB MENA.
“Abu Dhabi’s decline was broad-based, led by banks, ADNOC-linked stocks and major holding companies. The ADX’s continued trading below 10,000 points also reflected cautious sentiment, although trading activity remained relatively strong,” Azar said.
Dubai showed similar weakness, with Emaar Properties and Emaar Development weighing on the index, he added.
“However, gains in Emirates NBD, Dubai Islamic Bank, du and DEWA provided some support, highlighting selective buying despite the broader risk-off environment,” Azar said.
