Dubai’s shares dropped for a fourth day this week after United Arab Emirates bourses extended the date brokerages have to switch to a new settlement system, stoking concern the country won’t secure an MSCI Inc. (MSCI) upgrade.
Dubai Islamic Bank PJSC (DIB), the U.A.E.’s biggest bank complying with Shariah banking rules, lost as much as 1.3 percent. Drake & Scull International (DSI) PJSC, the Dubai-based construction and engineering company, declined a third day this week. The DFM General Index (DFMGI) slipped 0.7 percent, the most since April 25, to 1,654.47, at 10:38 a.m. in Dubai, bringing this week’s drop to 1.7 percent. The measure rose 6.2 percent this month on optimism local markets will be moved to MSCI’s emerging market indexes in June.
The U.A.E. stock exchanges will give brokerages and custodians until May 29 to switch to the so-called delivery- versus-payment system, one of MSCI’s criteria for an upgrade from frontier markets. The Emirates Securities and Commodities Authority, the nation’s regulator, said April 11 that DvP would be introduced at the bourses today.
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