July 10 (Bloomberg) -- Dubai’s benchmark stock index fell to the lowest in more than a week as oil prices dropped after trade data signaled that growth in China, the world’s second-biggest oil consumer, is slowing.
Dubai Investments PJSC, which owns stakes in 40 businesses, declined to the lowest level this month. Shuaa Capital PSC, a Dubai-based investment bank, closed at the lowest since February. The DFM General Index lost 0.2 percent to 1,488.39, the lowest since July 2, at the 2 p.m. close in Dubai. Royal Bank of Scotland Group Plc, Commerzbank AG and Standard Bank Group Ltd. abandoned talks with Dubai Group to restructure $10 billion of debt after failing to reach an agreement, two people familiar with the matter said.
“There’s pressure from global markets and regional markets,” said Chahir Hosni, equity sales manager at EFG-Hermes Holding SAE in Dubai. “Sentiment is not that great.”
The Bloomberg GCC 200 Index fell 0.3 percent and Saudi Arabia’s Tadawul All Share Index lost 0.7 percent. Oil prices, the main source of government revenue in the six-nation Gulf Cooperation Council, dropped for a third time in four days to 85.37 a barrel, declining as much as 1.6 percent to $84.62 a barrel. China’s stocks fell, dragging the benchmark index down to a six-month low, after a government report showed imports rose less than anticipated in June while export growth slowed.
Dubai Investments dropped 2.4 percent to 69 fils, the lowest since June 27. Shuaa retreated 2.5 percent to 62.5 fils, the lowest since Feb. 9. There are 100 fils to the dirham.
Dubai Group, controlled by Dubai Holding LLC, is among several government-owned companies in the Middle Eastern emirate seeking to restructure loans after property and asset values slumped and credit markets froze. The breakdown in talks comes after Dubai International Capital LLC reached an agreement with lenders to change terms on $2.5 billion of debt in April and Drydocks World LLC said creditors support restructuring plans.
Abu Dhabi’s ADX General Index and Bahrain’s All Share gauge fell 0.2 percent, while Oman’s MSM30 Index lost 0.7 percent. Kuwait’s SE Index measure gained 0.2 percent and Qatar’s QE Index rose 0.4 percent.
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