Today's Edition
A. SREENIVASA REDDY (ABU DHABI)
UAE stock markets came under severe pressure on Thursday amid renewed tensions in the region.
The ADX General Index (FADGI) fell 1.59% to close at 9,801.07. The session recorded active trading, with 27,983 transactions involving 314 million shares worth Dh1.35 billion. The total market capitalisation of ADX-listed companies stood at Dh2.568 trillion.
Banking stocks were hit hard by the prevailing sentiment. Abu Dhabi Islamic Bank slipped 4.03%, Abu Dhabi Commercial Bank dropped 3.34% and First Abu Dhabi Bank declined 2.3%.
Most ADNOC-linked stocks also fell sharply. ADNOC Drilling declined 3.7%, ADNOC Distribution lost 2.49% and ADNOC Gas slipped 2.71%. ADNOC Logistics and Services recorded a comparatively modest decline of 0.27%. Fertiglobe fell 3.98%, while Borouge declined 0.86%.
Telecom operator Etisalat dropped 2.34% to Dh20.88, while real estate major Aldar lost 3.42%.
Among holding companies, 2PointZero slipped 3.6% to Dh2.14, while Alpha Dhabi declined 2.17% to Dh7.20.
Emirates Stallions Group and Palms Sports, which are listed on the Growth Market, gained 5.19% and 4.11% respectively.
In Dubai, the Dubai Financial Market General Index (DFMGI) fell 1.667% to close at 5,799.23. The session recorded 16,323 trades, with 261 million shares changing hands for a total value of Dh658 million.
Market breadth was negative, with six gainers and 40 decliners, while four stocks remained unchanged.
Real estate major Emaar Properties dropped 1.75%, while its subsidiary Emaar Development recorded a relatively modest decline of 0.31%.
Banking stocks on the DFM too declined, with Emirates NBD slipping 3.55% and Dubai Islamic Bank falling 1.4%.
Toll-gate operator Salik dropped 3.13%, while utility provider DEWA declined 1.11%.
Telecom operator du slipped 2.3% to close at Dh11.92, while Sharjah-based airline Air Arabia fell 1.96% amid concerns about possible travel restrictions.
The sharp declines in Abu Dhabi and Dubai reflected a broad risk-off move, with regional tensions prompting investors to reduce their exposure to banking, energy-linked and property stocks, Milad Azar, Market Analyst at XTB MENA, said.
“The high trading volumes suggest active portfolio repositioning rather than a lack of liquidity. Banking stocks came under particular pressure as investors reassessed near-term economic and credit risks amid heightened uncertainty,” Azar said.
The broad decline also indicated that the selling was market-wide rather than concentrated in a few stocks, he added.
“In the near term, UAE equities are likely to remain sensitive to geopolitical developments, oil prices and global risk appetite. Fundamentally strong companies could attract selective buying once volatility subsides,” Azar said.
