x Abu Dhabi, UAESunday 23 July 2017

EFG-Hermes bank report triggers decline

Abu Dhabi's stock market declines amid reports that the MSCI has dropped two property stocks from the UAE Frontier Markets Index.

Sorouh, Abu Dhabi's second-biggest developer, declined 1.7 per cent to 55 fils a share. Jaime Puebla / The National
Sorouh, Abu Dhabi's second-biggest developer, declined 1.7 per cent to 55 fils a share. Jaime Puebla / The National

Abu Dhabi's stocks declined yesterday after a report published by EFG-Hermes bank.

The fall came after the lender said the international index provider MSCI had dropped two of the emirate's most actively traded stocks, Aldar Properties and Sorouh Real Estate, from the UAE Frontier Market Index as part of its semi-annual review.

Aldar, Abu Dhabi's biggest developer, lost 1.9 per cent to Dh1.03 a share. Sorouh, Abu Dhabi's second-biggest developer, declined 1.7 per cent to 55 fils a share. The Abu Dhabi Securities Exchange General Index was little changed at 2,473.57.

"This is better than we expected, though it is unclear why large capitalisation stocks with limited foreign ownership [such as Emirates NBD, First Gulf Bank and Dubai Islamic Bank] were not removed," Fahd Iqbal and Simon Kitchen, analysts at EFG-Hermes, said in a note to clients. Manuel Rensink, MSCI's head of Middle East and North Africa, declined to comment yesterday. Aldar Properties and Sorouh also declined to comment.

In June, MSCI delayed a decision until next month on whether to upgrade the UAE to "emerging market" status from "frontier market".

Property stocks listed on the Dubai Financial Market Exchange also declined yesterday following the report. Deyaar Development dropped 4 per cent to trade at 24 fils a share. Emaar Properties lost 0.7 per cent to Dh2.66. The DubaiFinancial Market General Index closed the trading week 0.5 per cent lower to 1,379.05.

Elsewhere in the region: Kuwait's index lost 0.2 per cent to 5,857.80; Bahrain's measure rose 0.7 per cent to 1,168.38; Oman's MSM 30 Index slipped 0.2 per cent to 5,521.17; Qatar's QE Index was little changed at 8,743.86. The Saudi Tadawul All-Share Index was closed for the day.

halsayegh@thenational.ae

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