U.A.E.’s Shares Retreat on Speculation Markets May Miss MSCI June Upgrade - Bloomberg

United Arab Emirates shares dropped, with Abu Dhabi’s measure dropping to the lowest level in more than six weeks, on speculation the nation won’t be upgraded by index provider MSCI Inc. (MSCI) to emerging market status next month.

Abu Dhabi Commercial Bank PJSC (ADCB), the U.A.E.’s third-biggest lender by assets, declined 2.5 percent. In Dubai, Dubai Islamic Bank PJSC (DIB) retreated to the lowest level since March. Abu Dhabi’s ADX General Index (ADSMI) dropped 0.6 percent to 2,616.29, the lowest since April 10. Dubai’s DFM General Index (DFMGI) slipped 0.2 percent to the lowest since April 5. The gauge gained 5 percent in April and Abu Dhabi’s advanced 3.4 percent in the same period on bets the U.A.E. will be raised from frontier market status at MSCI.

“The lack of strong international investor activity could indicate there are doubts the U.A.E. will be promoted at MSCI,” said Ziad Dabbas, a financial analyst at National Bank of Abu Dhabi PJSC (NBAD), the country’s second-largest lender by assets.