Dubai Stocks Drop Most in Six Weeks as MSCI Extends Review; Emaar Declines - Bloomberg

Dubai stocks dropped the most in six weeks, leading a decline in United Arab Emirates and Qatar, after the countries failed to secure emerging-market status at index provider MSCI Inc. (MSCI)

Emaar Properties PJSC (EMAAR), the builder of the world’s tallest skyscraper in Dubai, headed for the biggest loss since Oct. 3. Dubai Financial Market, the only publicly traded stock market in the six-nation Gulf Cooperation Council, dropped to the lowest since Nov. 27. Dubai’s benchmark DFM General Index fell 1.6 percent, the most since Nov. 1, to 1,362.53 at 10:32 a.m. in the emirate. Abu Dhabi’s ADX General Index (ADSMI) lost 0.8 percent, with Aldar Properties PJSC (ALDAR) tumbling 4.2 percent. Qatar’s QE Index fell 0.6 percent.

MSCI, whose stock indexes are tracked by investors with about $3 trillion in assets, will extend its review for reclassification of the U.A.E. and Qatar from frontier status “in order to give additional time for market participants to assess the effectiveness” of the new payment systems in the exchanges, according to a statement.

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