DFM and ADX drop as they reopen for first time this week

05/03/2026 04:55 AST

The UAE stock markets plunged on Wednesday, with the Dubai bourse losing 4.71 per cent and Abu Dhabi closing 1.93 per cent lower.

The UAE bourses opened for the first time this week on Wednesday since the regional military conflict involving the US, Israel, and Iran broke out on Saturday.

The Dubai Financial Market General Index closed at 6,197.19 points, down 306.3 points or 4.71 per cent.

Barring National Cement Co., all the shares ended in the negative territory, led by Amlak, Dewa, Dubai Investments, Dubai Residential REITs, Emirates NBD and Mashreq Bank, losing five per cent each.

Abu Dhabi Securities Exchange ended 202.3 points or 1.9 per cent down at 10,251.58 points, weighed down by Aldar, Abu Dhabi National Hotels, and Adnoc Distribution. They all lost five per cent during the day.

"The five per cent cap offers some breathing space and partially curbs the initial panic among investors. However, if the conflict persists, we would expect stocks to correct in line with their regional peers," Chiro Ghosh, group head of research at the Bahrain-based investment bank Sico, told Reuters.

Vijay Valecha, chief investment officer, Century Financial, said this temporary dip is likely to open up some interesting opportunities in the UAE's accelerating long-term equity story.

The UAE regulator (CMA) said that Dubai's stock exchange is implementing a temporary adjustment to the limit down threshold at 5 per cent to support orderly market conditions. This measure will be reviewed on an ongoing basis in coordination with regulators.

The UAE stocks had a strong start to the year, buoyed by robust foreign inflows.

"We expect sectors such as real estate, transportation and tourism-related companies to underperform the index, while for other stocks and sectors, we expect normalisation over the medium term and see this as an opportunity, once the market stabilises," added Ghosh.

Importantly, the Abu Dhabi Securities Exchange on Wednesday asked listed companies to review their exposures in the light of prevailing market circumstances and disclose any material information that may impact investors' decisions.

Khaleej Times