Dubai and Abu Dhabi indices post losses in first trading session since the war

       In the first trading session following the resumption of activity after a two-day closure, the Dubai Financial Market index fell by 4.65 percent at the opening of Wednesday’s session, approaching the daily limit of a 5 percent decline temporarily imposed by market regulators to curb volatility, while the Abu Dhabi market index dropped by about 3.6 percent.               Investors reduced their positions, particularly in blue-chip stocks in the real estate and banking sectors—which are the most sensitive to capital flows and investor confidence—amid escalating geopolitical tensions in the region, driven by U.S. and Israeli attacks and Iran’s response.

Most stocks traded on the two markets declined, with shares of Aldar Properties, Abu Dhabi Hotels, ADNOC Distribution, ADNOC Gas, Alf Education, Dana Gas, and Buruj falling by nearly five percent.       On the Dubai Financial Market, shares of Salik, Emaar Properties, Emirates NBD, National Bank of Dubai, Dubai Islamic Bank, and Air Arabia are trading down by about five percent.

The UAE Capital Markets Authority announced yesterday, Tuesday, the resumption of trading, clearing, and settlement activities in the UAE’s capital markets—namely the Abu Dhabi Securities Exchange and the Dubai Financial Market—effective today.   

 In a statement, the Authority said the decision to resume trading follows ongoing coordination between it and the two exchanges, in accordance with the previously announced schedule.                                                                   

The two-day closure of the stock exchanges halted trading on billions of dollars in listed assets, at a time when investors were waiting for clarity on the extent of the damage caused by the strikes earlier in the week, which hit airports, ports, and residential areas in the UAE.

Gulf markets that were open for trading last Sunday—such as those in Saudi Arabia, Oman, and Bahrain—saw sharp declines in their first trading session since the U.S. and Israel launched strikes on Iran, foreshadowing a potential sell-off when the UAE markets reopen.     These stock exchanges recouped some of their losses by the close of yesterday’s session.

In a statement yesterday, the Abu Dhabi Securities Exchange Group confirmed its operational and regulatory readiness to open the markets through its trading, clearing, settlement, and oversight systems, thereby supporting an organized and efficient market and enhancing the efficiency of operational mechanisms.