Today's Edition
A. SREENIVASA REDDY (ABU DHABI)
UAE stock markets remained subdued on Wednesday as uncertainty over the regional geopolitical situation persisted.
The ADX General Index (FADGI) fell 0.33% to close at 9,960.24. The session recorded 21,048 trades involving 266 million shares worth Dh940 million. The total market capitalisation of ADX-listed companies stood at Dh2.612 trillion.
Banking stocks declined. Abu Dhabi Islamic Bank slipped 0.43%, Abu Dhabi Commercial Bank dropped 0.98% and First Abu Dhabi Bank edged down 0.11%.
ADNOC-linked stocks were mixed. ADNOC Logistics and Services advanced 2.63% after ordering three additional 90,000-cubic-metre Very Large Gas Carriers at a cost of Dh1.19 billion. The vessels will be deployed under a seven-year contract with ADNOC Global Trading, the company said in a stock market disclosure.
Meanwhile, ADNOC Drilling declined 0.35%, while ADNOC Gas rose 0.3%. ADNOC Distribution gained 0.25%. Fertiglobe slipped 0.4%, while Borouge dropped 0.43%.
Telecom operator etisalat rose 0.56% to Dh21.38 as it launched its 50th-anniversary celebrations. Real estate major Aldar lost 0.37%.
Among holding companies, 2PointZero slipped 1.77% to Dh2.22, while Alpha Dhabi declined 1.08% to Dh7.36. Infrastructure company NMDC Energy rose 2.26%, while IT services company Alpha Data gained 2.9%.
In Dubai, the Dubai Financial Market General Index (DFMGI) fell 0.163% to close at 5,897.57. The session recorded 11,762 trades, with 249 million shares changing hands for a total value of Dh475 million.
Market breadth was even, with 21 gainers and 21 decliners, while 10 stocks remained unchanged.
Real estate major Emaar Properties remained unchanged at Dh11.46, while its subsidiary Emaar Development rose 0.79%. Banking stocks declined on the DFM, with Emirates NBD slipping 1.3% and Dubai Islamic Bank falling 0.56%.
Toll-gate operator Salik gained 0.74%, while utility provider DEWA declined 0.37%. Telecom operator du slipped 0.16% to close at Dh12.20, while Sharjah-based airline Air Arabia fell 0.22%.
“Wednesday was a quiet and cautious session, with relatively low trading volumes. It was a case of buyers holding back, rather than sellers rushing for the exit,” said Sayed A., Chief Business Officer at Graystone Capital.
Since the close on September 29, the two benchmark indices have declined by about 1.7% and 1.5%, respectively — an orderly adjustment given the broader backdrop, Sayed said.
Banks set the tone for the session because they are usually among the first stocks to be trimmed when investors become cautious, he said, adding that the declines said more about market sentiment than the sector’s fundamentals.
Investors responded positively where there was company-specific news, Sayed said, citing ADNOC Logistics and Services. The stock rose 2.63%, taking its two-day gain to about 4.4%, after the company ordered three additional 90,000-cubic-metre Very Large Gas Carriers for Dh1.19 billion.
The vessels are scheduled for delivery in the second half of 2029 and will be deployed under seven-year contracts with ADNOC Global Trading, providing revenue visibility for the investment, he said.
“That is exactly the kind of growth investors are willing to pay for in this market,” Sayed added.
The markets are going through a period of consolidation, with the indices drifting on relatively low volumes as investors move towards companies offering clear earnings visibility, Sayed said.
“The current pattern is likely to continue until the earnings season gives the market a new focus,” he added.
“For long-term investors, quiet periods such as this often provide an opportunity to build positions in quality companies at reasonable valuations,” Sayed concluded.
