The UAE stock markets experienced a notable downturn as global equity markets continued to face pressure, reflecting investor concerns over uncertainties in international financial conditions. On Tuesday, both the Abu Dhabi Securities Exchange (ADX) and the Dubai Financial Market (DFM) saw declines, marking another day of heightened volatility and cautious sentiment among traders. The market movements were particularly influenced by widespread worries that the anticipated US interest-rate cut may not materialize in December, prompting global investors to reassess risk exposure and liquidity positions.
A key highlight on the ADX was the debut of the newly formed 2PointZero Group, created through the merger of Multiply Group, Ghitha Holding, and 2PointZero Holding. Multiply and Ghitha were pre-existing listed entities whose shares have now been absorbed under the 2PointZero umbrella, while Ghitha continues to trade as a subsidiary. The debut was highly anticipated, and 2PointZero quickly emerged as the most actively traded stock in both value and volume. However, the market reception was cautious, as its share price fell from Dh2.61, when still trading as Multiply, to Dh2.48 under the new ticker, marking a 5% decline on its first day. Its market capitalization also dropped from Dh90.2 billion to Dh85.72 billion, despite the company’s stated goal of expanding to Dh120 billion in the future.
Overall, the ADX General Index fell for the fifth consecutive session, closing at 9,882.24, while the DFM General Index slid 0.983% to 5,898.93. Trading volumes remained robust, with thousands of trades executed across hundreds of millions of shares, reflecting active investor engagement despite the overall downturn. Blue-chip names such as Emaar, Emaar Development, and Salik contributed to the decline, while select stocks like Qatar’s Ooredoo Group saw gains due to strategic secondary share offerings.
The recent dip highlights the UAE markets’ sensitivity to global financial trends while demonstrating resilience through strategic listings and mergers. As investors navigate a period of uncertainty, the markets reflect both the challenges of external economic pressures and the opportunities arising from corporate restructuring, new market entries, and evolving sectoral dynamics, positioning the UAE as a vibrant yet carefully monitored financial hub.