Persian Gulf Shares Decline on U.S. Debt Concern; Shuaa Capital Retreats - Bloomberg

Persian Gulf shares fell for the first time in six days as investors discounted earnings reports after talks to raise the U.S.-debt ceiling broke down, threatening the credit worthiness of the world’s biggest economy.

Shuaa Capital PSC, the investment bank controlled by Dubai’s ruler, dropped the most in a week. Emirates NBD PJSC, the biggest bank in the United Arab Emirates by assets, slid to the lowest level in almost a month. The Bloomberg GCC 200 Index, which tracks the biggest 200 companies in the region, dropped 0.1 percent at the 3:30 p.m. close in Riyadh. Dubai’s benchmark DFM General Index retreated 0.2 percent to 1,520.47 the lowest close since June 29. Israel’s TA-25 Index gained.

“Turnover is very low due to summertime and the fact that Ramadan is approaching, along with the volatility in international markets because of the debt crisis in Europe and the U.S.” said Marwan Shurrab, assistant fund manager and chief trader at Dubai-based Gulfmena Alternative Investments. “We are seeing mostly positive earnings and this is supposed to help but people are reluctant to participate.”

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