Dubai shares dropped for a third time this week, led by Emaar Properties PJSC and Dubai Islamic Bank PJSC, after Moody’s Investors Service downgraded five of the emirate’s state-run companies and as oil retreated.
Emaar, the United Arab Emirates’ biggest developer, fell 3.5 percent, erasing most of yesterday’s gain. Dubai Islamic Bank declined for the third time this week. The DFM General Index has fluctuated this week, alternating daily between falling and rising as much as 5.5 percent. The measure lost 1.9 percent to 2,097.63, bringing the drop for the week to 4.6 percent.
“There seems to be some nervousness around the Moody’s downgrade on some Dubai Inc. names,” Mark Friedenthal, fund manager at Abu Dhabi Commercial Bank, wrote in an e-mail. “It was anticipated but there is always some reaction, especially from retail investors, to this kind of headline.”
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