Dubai Index Falls Led by Emaar as It Snaps 7-Day Winning StreakSarmad Khan
Dubai’s stock index, the best-performing gauge in the world this year, snapped a seven-day winning streak as investors took profit.
The DFM General Index retreated 0.7 percent, falling for the first time since March 12, to 4,318.48 at the close. The measure rallied 8.1 percent last week, its biggest such advance this year after Dubai refinanced $20 billion of debt. Gulf Navigation Holding fell to the lowest in two weeks as its full-year loss widened. Emaar Properties PJSC declined 0.8 percent.
Dubai’s benchmark trades at more than 15 times estimated earnings compared with 9.2 times for the MSCI Emerging Market Index. The gauge, which has more than doubled in the last 12 months, has had three winning streaks of seven days or more this year as it gained 28 percent, making it the top performer among more than 90 indexes tracked by Bloomberg.
“It’s a break after a strong rally,” said Montasser Khelifi, senior manager for global markets at Quantum Investment Bank Ltd. in Dubai. The market needs to take “a bit of rest as locally, we are not seeing any catalyst that can spur trade,” he said.
Gulf Navigation lost 2.9 percent to 0.408 dirham as the shipping company’s full-year loss soared as it booked one-time provisions. Emaar, the company with the biggest weighting on Dubai’s index, dropped to 9.75 dirhams.