Today's Edition
A. SREENIVASA REDDY (ABU DHABI)
UAE stock markets resisted selling pressure on Tuesday, with Dubai reporting gains while Abu Dhabi closed with modest losses amid heightened tensions in the region.
The ADX General Index (FADGI) fell 0.34% to close at 9,761.93. The session recorded 19,476 trades involving 353 million shares worth Dh845 million. The total market capitalisation of ADX-listed companies stood at Dh2.563 trillion.
Banking stocks were mixed amid subdued trading on the ADX. Abu Dhabi Islamic Bank slipped 0.81% even as it announced key dates and details for its upcoming rights issue. The transaction will raise up to Dh1.75 billion through the issuance of up to 106.5 million new ordinary shares by way of a tradable rights issue.
Abu Dhabi Commercial Bank gained 0.51%, while First Abu Dhabi Bank declined 0.11%.
ADNOC-linked stocks were mostly lower, with ADNOC Distribution declining 2.56%. ADNOC Drilling remained unchanged at Dh5.58. ADNOC Gas declined 0.31%, while ADNOC Logistics and Services slipped 0.93%. Fertiglobe fell 0.84%, while Borouge declined 0.43%.
Telecom operator Etisalat rose 0.68% to Dh20.78, while real estate major Aldar bucked the trend to gain 1%.
Among holding companies, 2PointZero slipped 0.46% to Dh2.15, while Alpha Dhabi rose 0.14% to Dh7.20.
In Dubai, the Dubai Financial Market General Index (DFMGI) rose 0.332% to close at 5,837.77. The session recorded 11,923 trades, with 196 million shares changing hands for a total value of Dh381 million.
Market breadth was negative, with 14 gainers and 29 decliners, while 12 stocks remained unchanged.
Real estate major Emaar Properties dropped 0.7%, while its subsidiary Emaar Development gained 1.3%, helping the index advance despite the majority of stocks ending in negative territory.
Banking stocks on the DFM were mixed, with Emirates NBD gaining 1.2% and Dubai Islamic Bank falling 0.28%.
Toll-gate operator Salik remained unchanged at Dh5.30, while utility provider DEWA rose 1.87%.
Telecom operator du gained 2.86% to close at Dh12.24, while Sharjah-based airline Air Arabia rose 2.27%.
Dubai Refreshment Company, which holds the franchise for bottling and selling Pepsi-Cola products, surged 10%. The company recently announced the approval of a special dividend of Dh1.10 per share, totalling Dh99 million.
Dubai Residential REIT rose 1.98%, showing resilience amid pressure on real estate stocks.
UAE equities demonstrated resilience on Tuesday despite continued regional pressures, Sayed A, Chief Business Officer at Graystone Capital, said.
“Dubai’s advance was driven by its strongest names. Emirates NBD, DEWA, du and Air Arabia made substantial gains.
Although decliners outnumbered gainers by 29 to 14, the index still closed higher, which tells us that investors are rotating into quality, cash-generating companies rather than leaving the market,” Sayed said.
Dividends remained an attraction for investors, with Dubai Refreshment surging 10% following its dividend announcement, he said.
Gains in Dubai Residential REIT, Aldar and Emaar Development also indicated continued investor interest in real estate sector.
Referring to Abu Dhabi Islamic Bank's rights issue, Sayed said the additional capital would support the bank's expansion plans, with major shareholders committed to taking up their entitlements.
ADNOC-linked stocks witnessed profit-taking, which Sayed described as a sign of consolidation. “With Brent crude trading above $100 a barrel, the earnings outlook for the energy complex remains well supported,” he said.
Looking ahead, Sayed said geopolitical developments would continue to influence daily market sentiment.
“Tuesday’s session showed how the UAE market behaves under pressure: liquidity stayed healthy, selling was contained and capital moved toward quality,” he added.
