These #Dubai Stocks Are Seen Slumping Deeper Amid MSCI Review - Bloomberg

These Dubai Stocks Are Seen Slumping Deeper Amid MSCI Review - Bloomberg:

Three of Dubai’s biggest real-estate and development companies are at risk of being removed from one of the world’s most popular emerging-market benchmarks this year as a slowing economy drags down the emirate’s property values.

Damac Properties PJSC’s stock has plunged by about two-thirds in the past 12 months, while Emaar Malls PJSC and Emaar Development PJSC are both down 34 percent. That performance sets them up for exclusion from the MSCI Emerging Markets Index in May under the compiler’s criteria for membership in the gauge, according to Mohamad Al Hajj, equities strategist at the research arm of EFG-Hermes Holding Co. Their departure could lead to combined investment outflows of about $220 million, he said.

The three companies are by far the worst performers in 2019 among the eight stocks on Dubai’s real estate and construction index, a gauge that’s dropped in the past year as building in the emirate outpaced expected demand growth. The housing component of Dubai’s consumer-price index has fallen for all but three months since at least May 2016, according to data compiled by Bloomberg.