ADCB Declines on Debt Restructuring Concern; Dubai Index Falls

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Abu Dhabi Commercial Bank PJSC declined for a second day as the United Arab Emirates’ third- biggest lender said it was studying Dubai World’s debt proposal. Dubai’s Index fell as investors await details of the plan.

Abu Dhabi Commercial Bank, which may be owed $1.9 billion by Dubai World, lost the most in almost two weeks. Drake & Scull International PJSC, a Dubai-based construction company, slid the most in three weeks. The Dubai Financial Market General Index retreated 0.4 percent to 1,843.47. The measure gained 2.2 percent for the quarter. Abu Dhabi’s ADX General Index declined 0.6 percent to 2,908.49, the biggest drop since March 18.

“Investors are anxiously awaiting further clarity on Dubai World and eventually the approval of the proposed restructuring plan,” said Ali Taqi, a portfolio manager at A/T Capital Management in Dubai. “Further announcements relating to the proposed restructuring plan, coupled with first-quarter results, will move the market in the short-term.”