The UAE stock market experienced a significant downturn on Thursday, with the Dubai Financial Market index declining by 1.7%, or 98 points, to close at 5799 points. The total value of trades for the day reached approximately 659 million dirham. This decline is part of a broader trend, as both the Dubai and Abu Dhabi markets have implemented a temporary 5% daily price decline cap, down from 10%, as a precautionary measure to protect investors and maintain trading stability.
Market activity showed a near-uniform decline in traded stocks, with 40 out of 50 companies listed on the Dubai market closing lower, while six companies saw their stocks rise, and four remained unchanged. Notable declines included Emaar Properties, which fell by 1.7% to 11.26 dirham, with nearly 21 million shares traded. The Union Properties stock also decreased by 2.3% to 0.596 dirham, with about 35 million shares traded.
Other significant decliners on the Dubai market included Emirates NBD, which dropped by 3.6% to 29.32 dirham, marking its lowest close since last July, with nearly 3 million shares traded. Additionally, Dubai Islamic Bank fell by 1.4% to 7.06 dirham, its lowest close since April 2025, with about 7 million shares traded. The stock of Talabat declined to its lowest since last May by the maximum allowed percentage, closing at 1.040 dirham, with over 23 million shares traded.
On the Abu Dhabi market, the index closed down by 1.6%, or 159 points, at 9801 points, with total trades valued at 1.3 billion dirham. The majority of traded stocks on this market also saw declines, with 79 out of 99 companies listed closing lower, while seven companies' stocks rose, and 13 remained steady. Ishraq for Investment saw its stock decrease by 3.7% to 0.627 dirham, with trades exceeding 24 million shares.
Further declines on the Abu Dhabi market included Abu Dhabi National Hotels, which fell by 2.2% to 0.453 dirham, with nearly 30 million shares traded. The stock of Brooge dropped by about 0.9% to 2.32 dirham, marking its lowest close since March 2025, with approximately 17 million shares traded. Meanwhile, Americana closed down by 0.4% at 2.44 dirham, with over 19 million shares traded.
The most traded stock on the Dubai market was Drake & Scull, which decreased by 3% to 0.288 dirham, with trades surpassing 46 million shares. This significant trading activity underscores the day's market movements. The implementation of the temporary price decline cap aims to mitigate extreme volatility and ensure investor protection during these uncertain times.
The consistent declines across major stocks in both Dubai and Abu Dhabi markets reflect a cautious investor sentiment amid ongoing economic considerations. Market participants are closely monitoring these developments, especially the effects of the temporary measures introduced to stabilize market conditions. As the situation evolves, investors and analysts will be paying close attention to future trading sessions for signs of recovery or further adjustments.
Key points
- The Dubai Financial Market index declined by 1.7% to 5799 points.
- The Abu Dhabi market index fell by 1.6% to 9801 points.
- Most stocks on both markets saw significant declines, with notable decreases in major companies such as Emaar Properties and Emirates NBD.
