Abu Dhabi Shares Drop on Speculation Gain Overdone - Bloomberg

Shares in the United Arab Emirates declined, sending Abu Dhabi’s gauge (KWSEIDX) down the most in more than a week, amid speculation a four-day gain spurred by an increase in wages for the nation’s government employees was overdone.

Emirates Telecommunications Corp., the U.A.E.’s biggest phone company, decreased as much as 1.1 percent. Abu Dhabi Islamic Bank PJSC (ADIB), the Persian Gulf nation’s second-biggest Shariah-compliant bank, decreased the most since July 25. The ADX General Index (ADSMI) fell 0.1 percent, the most since Nov. 24, to 2,470.52 at the 2 p.m. close in the emirate. The measure advanced 2.4 percent in the four days through yesterday. Dubai’s DFM General Index (DFMGI) slipped 0.4 percent.

“Markets in the U.A.E. are taking a breather after consecutive days of good performance,” said Samer Darwiche, an analyst at Gulfmena Investments in Dubai. “Markets should find support at these levels after the emergence of more positive catalysts for the U.A.E., including the draft law on foreign ownership.”

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