Persian Gulf Stocks: ADCB, Dubai Islamic and Emirates NBD
Dubai’s DFM General Index (DFMGI) retreated 1.7 percent, the most since May 23. The DFM Financial Banks Index led the decline, losing 2.7 percent. Abu Dhabi’s ADX General Index (ADSMI) slipped 0.7 percent and Saudi Arabia’s Tadawul All Share Index (SASEIDX) decreased 1 percent at the 3:30 p.m. close in Riyadh.
The following stocks rose or fell in the Persian Gulf region. Symbols are in parentheses.
Abu Dhabi Commercial Bank PJSC (ADCB) dropped the most since March 2, falling 2.7 percent to 3.2 dirhams. The United Arab Emirates’ third-largest bank by assets was lowered to “sell” from “buy” at Goldman Sachs Group Inc. and had its 24-month price estimate cut to 3.04 dirhams from 3.44 dirhams.
U.A.E. banks had their earnings estimates cut by 10 percent on average for the period from 2011 to 2014 by Goldman Sachs because of new central bank guidelines that capped consumer loans.
Dubai Islamic Bank PJSC (DIB) lost the most in almost a month, retreating 1.4 percent to 2.07 dirhams. The U.A.E.’s biggest bank complying with Shariah rules was cut to “sell” from “neutral” and had its 24-month price estimate lowered to 2.07 dirhams from 2.50 dirhams at Goldman Sachs.
Emirates NBD PJSC (EMIRATES) slumped the most on record, tumbling 6.4 percent to 4.27 dirhams. The U.A.E.’s biggest bank by assets was cut to “neutral” from “buy” and had its 24- month price estimate lowered to 4.74 dirhams from 5.01 dirhams at Goldman Sachs.
Southern Province Cement Co. (SOCCO) advanced a second day, rising 1.7 percent to 74 riyals, the highest level in a week. Saudi Arabia’s biggest cement producer by market value said its board recommended a dividend of 2.75 riyals a share for the first half of this year.
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