Dubai shares fell for the first time in almost a week, reversing earlier gains, after brokerages in the UAE said the nation may fail to win an emerging-market status upgrade at MSCI Inc.
Tamweel, dropped the most since June 3. Dubai Investments, which has stakes in 40 businesses from real estate to glass production, slumped the most in more than a week.
The benchmark DFM General Index declined 0.2 per cent, the most since June 14, to 1,476.57 points and Abu Dhabi measure gained 0.9 per cent and closed at 2,489.55 points.
The data compiled by Bloomberg shows that 37 million shares werer traded compared with a 12-month daily average of about 61 million shares. About 103 million shares were traded in Dubai, compared with a 12-month average of 138 million shares, the data showed. The UAE and Qatar are both under consideration for a possible upgrade from frontier-market status at MSCI.
Eight of the UAE’s top 10 brokerages on the Dubai Financial Market by trading value in May said the nation would remain as a frontier market, while two said the elevation to emerging-market status will happen. EFG-Hermes Brokerage UAE and Daman Securities predicted Qatar would also most likely fail to make the promotion. Both countries are up for review for the fourth year.
Tamweel declined 2.5 per cent to Dh1.17. Dubai Investments retreated 2.3 per cent to 66.7 fils. Oman’s MSM30 Index fell 0.2 per cent and Kuwait’s gauge dropped 0.5 per cent.
The Bloomberg GCC 200 Index and Saudi Arabia’s Tadawul All Share Index advanced 0.3 per cent. Bahrain’s measure gained 0.1 per cent.
Bursa likely to extend profit taking
Share prices are expected to undergo further profit-taking next week with the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) possibly retreating to the 1760 points support level.