Dubai’s benchmark index dropped a third day in the longest losing streak in more than three months, amid bets the rally before the United Arab Emirates’ upgrade to emerging market status is overdone. Qatar fell.
The DFM General Index (DFMGI) declined 0.9 percent to 5,135.95 in Dubai, marking the longest retreat since Feb. 2. The index has gained more than 50 percent this year. Emaar Properties PJSC, the stock with biggest weighting on the bourse, dropped 1.9 percent, First Gulf Bank PJSC (FGB) declined 0.9 percent and Dubai Islamic Bank PJSC (DIB) dropped 1.2 percent. All three are among stocks to be included in MSCI’s emerging markets measure starting next month. Qatar’s QE Index retreated 0.6 percent and Abu Dhabi’s gauge declined 0.7 percent.
MSCI, whose indexes are tracked by investors managing about $8 trillion in assets, on May 14 said which companies from the United Arab Emirates and Qatar would be included in its developing markets gauge after the countries were upgraded from frontier market status. The change may attract more than $649 million of funds to Qatar and $905 million to the U.A.E., according to HSBC Holdings Plc.
“Everybody was expecting a correction after the MSCI upgrade but it started a bit early,” Hisham Khairy, the Dubai-based head of institutional trade at Mena Corp. Financial Services LLC, said by phone today. “It’s the same as buy the rumor and sell the fact.”
Egypt’s benchmark EGX30 Index was little changed at 1:21 p.m. in Cairo. Saudi Arabia’s Tadawul All Share Index gained 0.1 percent and Muscat’s measure increased 0.2 percent. Kuwait and Bahrain’s gauges were little changed.
Israel’s TA-25 Index increased 0.3 percent, while the yield on the government’s benchmark bonds due March 2024 plunged 10 basis points, or 0.1 of a percentage point, to 3.02 percent.
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