Today's Edition
A. SREENIVASA REDDY (ABU DHABI)
UAE stock markets remained broadly resilient as the US administration expanded sanctions against Iran, diminishing prospects of an early resolution to the Strait of Hormuz crisis.
The ADX General Index (FADGI) rose 0.216% to close at 10,070.02. The session recorded 23,157 trades involving 349 million shares worth Dh1.08 billion. The total market capitalisation of ADX-listed companies stood at Dh2.934 trillion.
Banking stocks delivered a mixed performance. Abu Dhabi Commercial Bank rose 0.13% and Abu Dhabi Islamic Bank gained 0.43%, while First Abu Dhabi Bank slipped 0.81%.
Most ADNOC-linked stocks retreated following their recent gains. ADNOC Logistics and Services fell 0.29% despite ordering two LNG carriers for $444 million and BofA raising its price target for the stock. ADNOC Drilling slipped 0.81%, while ADNOC Distribution declined 0.24%. ADNOC Gas dropped 0.3% to Dh3.29. Fertiglobe rose 1.53%, while Borouge advanced 0.83%.
NMDC Group rose 3.38% to Dh23.88, while NMDC Energy advanced 1.05%. Real estate major Aldar gained 0.52%.
Holding companies Alpha Dhabi and 2PointZero suffered losses, with the former declining 0.91% and the latter dropping 0.96% to Dh2.07.
Phoenix Group, the crypto mining and data centre infrastructure company, gained 4.86%, bucking its losing streak in recent times.
Al Buhaira National Insurance and Burjeel were among the decliners, with the former losing 4.82% and the latter dropping 3.1%.
In Dubai, the Dubai Financial Market General Index (DFMGI) fell 0.529% to close at 5,834.57. The session recorded 15,746 trades, with 288 million shares changing hands for a total value of Dh1.06 billion.
Market breadth was negative, with 10 gainers, 28 decliners and 13 stocks remaining unchanged.
Real estate majors Emaar Properties and Emaar Development weighed on the main index, with the former falling 1.62% and the latter losing 0.77%.
Banking stocks also followed the broader market trend, with Emirates NBD losing 0.46% and Dubai Islamic Bank dropping 1.6%.
Road-toll operator Salik fell 0.95%, while food delivery company talabat rose 0.83%. Sharjah-based airline Air Arabia dropped 0.8%, while telecom operator du declined 0.17%.
Supermarket operator Spinneys and free-zone operator TECOM were among the stocks that gained more than 1%. The UAE market’s performance was less indicative of a broad-based risk-on move and more reflective of selective positioning against an unusually complicated regional backdrop, Sayed A., Chief Business Officer at Graystone Capital, said.
“The ADX’s resilience is encouraging, although the modest advance suggests that investors remain cautious rather than aggressively adding risk,” Sayed said.
NMDC Group and NMDC Energy were the standout performers in Abu Dhabi, with the latter supported by substantial project visibility and a 16% increase in first-half revenue to Dh9.5 billion, he noted.
The weakness in ADNOC Drilling, ADNOC Gas and ADNOC Logistics and Services therefore appeared to reflect profit-taking and portfolio rotation rather than any deterioration in the underlying UAE energy investment story, Sayed added.
With shipping incidents around the Strait of Hormuz continuing and Washington’s sanctions campaign still evolving, the next few sessions were likely to remain driven by regional headlines, he said.
“The UAE market’s ability to absorb this volatility without a sharper sell-off remains a constructive signal,” Sayed added.
