Dubai’s shares fell the most in a week, leading a decline in most Persian Gulf markets, as concern grew that Greece may exit the euro and oil prices fell.
Emaar Properties PJSC, developer of the world’s tallest skyscraper in Dubai, slumped the most since May 2. Gulf Navigation Holding, a company specialized in the shipping of oil and chemicals, dropped 2.7 percent. The benchmark DFM General Index decreased 1.1 percent, the biggest retreat since May 16, to 1,480.1 at the 2 p.m. close in the emirate. The Bloomberg GCC 200 Index slipped 0.3 percent at 1:25 p.m. in Riyadh.
“The market is down on concern about Greece’s exit, and weak oil prices,” said Nabil Farhat, a partner at Abu Dhabi-based Al Fajer Securities. “Also the sharp drop in Asian markets and weak U.S.” future indexes “is not helping sentiment.”
Oil slid for a second day after U.S. crude stockpiles rose and Iran agreed to grant United Nations inspectors access to the country’s Parchin military complex. Crude for July delivery fell as much as 1 percent to $90.71 a barrel. The Gulf Cooperation Council, which includes Saudi Arabia, the United Arab Emirates, Qatar, Oman, Bahrain and Kuwait, sits on one-fifth of the world’s proven oil reserves.
European leaders are meeting in Brussels today to discuss the region’s debt crisis that has wiped more than $4 trillion from equity markets worldwide this month. Greece will hold elections on June 17 after an inconclusive ballot revived concerns the country will drop out of the euro area.
The MSCI Asia Pacific Index fell 1.6 percent and the MSCI Emerging Markets Index tumbled 2 percent. European stocks also declined, with the Stoxx Europe 600 Index falling 1.5 percent. Standard & Poor’s 500 Index futures retreated 0.7 percent.
Emaar lost 2.4 percent to 2.90 dirhams, while Gulf Navigation declined to 25.3 fils. There are 100 fils to the dirham.
Kuwait’s measure fell 0.2 percent, Qatar’s QE Index lost 0.4 percent and Oman’s MSM30 Index dropped 0.5 percent. Saudi Arabia’s Tadawul All Share Index decreased 0.7 percent. Abu Dhabi’s ADX General Index gained 0.2 percent while Bahrain’s measure was little changed.