Dubai shares declined to the lowest in almost three weeks, leading Gulf benchmarks lower, on investor concern that stock prices have outpaced the prospects for earnings growth.
Emaar Properties PJSC, the biggest developer in the United Arab Emirates, fell to its lowest in two weeks and Emirates NBD PJSC, the country’s biggest bank, lost as much as 2.9 percent. The Dubai Financial Market General Index, up 16 percent since the beginning of September, fell for a third day, losing 1.7 percent to 2,220.47 at 1 p.m. in the emirate.
The rally left the 32 companies in Dubai’s benchmark index valued at 28 times earnings as of Oct. 14, the highest ratio since at least February 2007, data compiled by Bloomberg show. The measure has lost 6.4 percent since and yesterday closed at 26 times earnings. The MSCI Emerging Markets Index, down 1.2 percent today, trades at 21 times earnings.
No comments:
Post a Comment