Abu Dhabi’s ADCB Drops the Most in 3 Months; Dubai Shares Slide

Abu Dhabi Commercial Bank, the U.A.E.’s third-biggest bank by assets, fell the most in three months as loans to two troubled Saudi business groups prompted an analyst downgrade. Dubai’s index slid to a one-week low.

ADCB closed down 6.2 percent at 2.44 dirhams after dropping as much as 9.6 percent earlier, after Citigroup Inc. cut its recommendation on the shares to “hold” from “buy,” citing risk associated with money the lender is owed by the Saad and Algosaibi groups, which have defaulted on some of their loan repayments. The Dubai Financial Market General Index declined for the first time in five sessions, retreating 0.9 percent to 2,185.03, its lowest since Sept. 17. Oil fell for a second day.

“Our markets are down due to weaker international markets, weaker oil and on the back of very strong trading yesterday,” said Ali Khan, head of cash-equity trading at Dubai-based Arqaam Capital Ltd. “Exposure to Saad and Algosaibi groups is also having an impact, mainly on ADCB.”

Overnight report, blown away by mid-morning!