BlackRock Cuts Dubai Holdings on Signs of ‘Speculative Excess’ - Bloomberg

BlackRock Cuts Dubai Holdings on Signs of ‘Speculative Excess’ - Bloomberg:



"BlackRock Frontiers Investment Trust Plc (BRFI), the $297 million frontier-market equity fund, said it “substantially reduced” holdings in the United Arab Emirates last month on concern about its soaring stock markets.



“While the U.A.E economy in general is performing well and Dubai is booming, we are increasingly concerned about the level of speculation in the market,” investment managers Sam Vecht and Emily Fletcher said in a regulatory filing.



Indexes in the U.A.E.’s two main markets of Dubai and Abu Dhabi were among the top three performers last year globally as the country’s real-estate and banking industries recovered. Dubai’s gauge more than doubled as Abu Dhabi’s rose 63 percent.



The combined daily average traded value on Dubai and Abu Dhabi bourses this year is more than $800 million, which compares with $74 million per day for both markets in the same period two years ago, according to data complied by Bloomberg. The surge is driven by retail investors and not by institutional investors, the fund said."



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