U.A.E. Markets Regulator Investigating June Stock Volatility - Bloomberg

U.A.E. Markets Regulator Investigating June Stock Volatility - Bloomberg:



"The United Arab Emirates’ market regulator is investigating share price declines in Dubai and Abu Dhabi during June that led the world’s best performing stock index to post its worst month in more than five years.



Dubai’s benchmark share index plunged 22 percent last month, its biggest decline since November 2008, fueled by changes in ownership and management at Arabtec Holding Co. (ARTC), the country’s largest publicly traded construction company. The index rebounded this week, erasing some of the losses, and is up 30 percent so far this year, making it the best performer in dollar terms among more than 90 gauges tracked by Bloomberg globally.



The price declines brought back memories of crashes in 2006 and 2008 and sparked concerns about the quality of corporate governance and regulation in the U.A.E., whose exchanges began trading as emerging markets last month. It also prompted members of the U.A.E.’s Federal National Council, an advisory authority that represents the interests of the Emirati population, to call for more robust legislation."



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