Today's Edition
A. SREENIVASA REDDY (ABU DHABI)
UAE stock markets remained under pressure on Thursday as geopolitical uncertainty continued to weigh on market sentiment.
The ADX General Index (FADGI) fell 0.716% to close at 9,998.24. The session recorded 27,316 trades involving 263 million shares worth Dh1.12 billion. The total market capitalisation of ADX-listed companies stood at Dh2.620 trillion.
Banking stocks closed lower for a second consecutive day, contributing to the broader market weakness. Abu Dhabi Islamic Bank fell 1.79%, Abu Dhabi Commercial Bank slipped 0.6% and First Abu Dhabi Bank dropped 1.52%.
Most ADNOC-linked stocks also came under pressure, although ADNOC Distribution and Fertiglobe posted gains. ADNOC Drilling slipped 1.56%, ADNOC Gas fell 0.9% and ADNOC Logistics and Services dropped 1.96%. ADNOC Distribution rose 0.25% and Fertiglobe gained 1.19%, while Borouge remained unchanged at Dh2.36.
Telecom operator e& slipped 2.12%, with its share price falling to Dh21.20. Real estate major Aldar declined 1.59%.
Among holding companies, 2PointZero advanced 1.8% to Dh2.26, while Alpha Dhabi fell 1.82% to Dh7.55.
Abu Dhabi National Investment and Development, formerly known as BILDCO, declined 3.01%. Burjeel Holdings extended its gains, rising 0.86%.
In Dubai, the Dubai Financial Market General Index (DFMGI) fell 0.51% to close at 5,930.40. The session recorded 19,338 trades, with 241 million shares changing hands for a total value of Dh660 million.
Market breadth was negative, with 12 gainers and 30 decliners, while 12 stocks remained unchanged.
Real estate major Emaar Properties slipped 2.25%, while its subsidiary Emaar Development fell 1.38%.
Banking stocks bucked the broader trend on the DFM, with Emirates NBD advancing 0.58% and Dubai Islamic Bank adding 0.14%.
Toll-gate operator Salik gained 2.54%, while parking operator Parkin remained unchanged at Dh6.10.
Utility provider DEWA slipped 2.21%, while telecom operator du remained unchanged at Dh12.14. Sharjah-based airline Air Arabia declined 2.01%, while food-delivery platform talabat also traded lower, falling 0.45%.
“Thursday’s session was a cautious one for UAE equities, reflecting consolidation rather than a change in market fundamentals,” said Sayed A., Chief Business Officer at Graystone Capital.
Since Tuesday’s close, the Abu Dhabi and Dubai benchmark indices have declined by about 1.3% and 1% respectively.
“These are modest moves given the regional backdrop. Investors are adopting a wait-and-see approach while geopolitical uncertainty persists. The selling reflects profit-taking and portfolio repositioning rather than any loss of confidence in the UAE market,” Sayed said.
Higher interest rates and the possibility of further increases could help explain the pressure on property companies such as Aldar and Emaar, Sayed said. “Beneath the headline numbers, the markets showed clear pockets of strength.
In Dubai, Emirates NBD and Dubai Islamic Bank gained, indicating that banking stocks remained relatively resilient,” he said. “Selective buying in stocks such as 2PointZero and Burjeel shows that investors are not leaving the market. They are rotating towards companies with resilient earnings, strong cash flows and dependable dividends,” Sayed said.
Liquidity remained healthy, with more than Dh1.78 billion changing hands across the two exchanges through more than 46,000 trades. More than 500 million shares were traded, he added.
“Markets that maintain this level of participation during uncertain periods are typically well positioned to recover when sentiment improves,” Sayed said.
