Today's Edition
A. SREENIVASA REDDY (ABU DHABI)
UAE stock markets gained on Monday despite elevated regional tensions and oil prices.
The ADX General Index (FADGI) rose 0.057% to close at 10,118.32. The session recorded 32,633 trades involving 460 million shares worth Dh1.62 billion. The total market capitalisation of ADX-listed companies stood at Dh2.642 trillion. ADX also reported a bulk transaction worth Dh37 million involving shares of Abu Dhabi National Insurance Company.
Banking stocks advanced, with First Abu Dhabi Bank adding 0.72%. Abu Dhabi Islamic Bank gained 0.68%, while Abu Dhabi Commercial Bank rose 0.37%.
ADNOC-linked stocks presented a mixed picture. ADNOC Drilling rose 0.85%, while ADNOC Gas slipped 0.61%. ADNOC Logistics and Services gained 0.68%, while ADNOC Distribution fell 0.99%. Fertiglobe lost 3.36%, while Borouge declined 0.84%.
Space42 was a major gainer, rising 6.53% after announcing the launch of a new company that will provide services to mobile operators in collaboration with a French technology firm.
Among holding companies, 2PointZero lost 3.43% to close at Dh2.25, while Alpha Dhabi gained 1.63%.
Real estate major Aldar added 0.51% despite a challenging environment for the property sector.
Telecom operator e& gained 0.83% to close at Dh21.98. Engineering contractor NMDC rose 1.66%.
On the Growth Market, Al Seer Marine continued its bull run with a gain of 3.33%.
In Dubai, the Dubai Financial Market General Index (DFMGI) rose 0.595% to close at 5,976.58. The session recorded 20,354 trades, with 402 million shares changing hands for a total value of Dh1.06 billion. Market breadth was positive, with 25 gainers and 19 decliners, while 11 stocks remained unchanged.
Real estate major Emaar Properties surged 6.42%, while its subsidiary Emaar Development advanced 2%.
Banking stocks traded in negative territory, with Emirates NBD losing 1.46% and Dubai Islamic Bank slipping 0.54%.
Telecom operator du gained 1.03%, matching the positive performance of rival e& on the ADX. Utility provider DEWA lost 1.79%, while toll gate operator Salik declined 0.19%. Food delivery platform talabat lost 1.72% to close at Dh1.14.
“Space42’s 6.53% gain was the most significant move on the ADX on Monday. The reason lies in the structure of the deal, rather than simply in its announcement,” said Sayed A., Chief Business Officer at Graystone Capital.
Space42 signed a binding agreement with Viasat to establish Equatys, a shared space and ground infrastructure platform for direct-to-device connectivity. Each company will commit $400 million in initial equity, with Space42 contributing a further $200 million in a subsequent funding round.
This will bring their combined commitment to about $1 billion. The planned constellation will comprise up to 2,800 satellites across 60 orbital planes. “What the market rewarded was Space42’s spectrum position.
The company brings coordinated L-band spectrum rights across more than 160 markets, while the combined platform will have access to more than 100 MHz of globally coordinated spectrum and commercial relationships with over 400 mobile network operators,” Sayed said.
Viasat, by contrast, will act as the prime technology contractor, giving it responsibility for the construction and delivery of the satellite network.
“That distinction may explain why Space42 rallied on the ADX while Viasat fell as much as 5% in US pre-market trading following the same announcement.
Two exchanges delivered different verdicts on the deal: investors appeared to place greater value on Space42’s spectrum position, while weighing the execution risks facing Viasat,” he added.
“With the companies estimating the direct-to-device market opportunity at between $30 billion and $70 billion by 2040, Space42 has evolved from an Abu Dhabi space and AI company into one with a credible position in global mobile satellite infrastructure,” Sayed said.
Commenting on the Dubai market, he said: “The DFMGI’s 0.595% advance was largely driven by Emaar.”
Abu Dhabi banking stocks strengthened, with FAB rising 0.72%, ADIB gaining 0.68% and ADCB advancing 0.37%. In Dubai, Emirates NBD declined 1.46%, while Dubai Islamic Bank lost 0.54%.
Sayed described the contrasting performance as a rotation in investor interest, with capital moving towards Abu Dhabi banks and Emaar Properties in Dubai.
