World Economy

Dubai Stocks Lead Mideast Declines as Oil Slumps

Dubai Stocks Lead Mideast Declines as Oil Slumps
Dubai Stocks Lead Mideast Declines as Oil Slumps

Dubai stocks retreated, leading equity markets lower across the Persian Gulf, after oil dropped to the lowest in four-months and some investors sought to benefit from the DFM General Index’s rally last week.

The benchmark gauge dropped 1.3%, the most in almost three weeks, to 4,147.63 at the close, Bloomberg reported.

Emirates NBD, the largest banking group in the Middle East and UAE's second-biggest lender by assets, slid the most in five weeks.

Emaar Properties, the developer of the world’s tallest tower, lost the most since July 8. Saudi Arabia’s Tadawul All Share Index fell 0.8% in Riyadh, the most in a month.

The drop is “a combination of profit taking after a good start to the earnings season and investors pricing in the impact of Iran’s nuclear deal on oil prices in the short term,” said Sanyalak Manibhandu, the head of research at NBAD Securities in Abu Dhabi, said by phone.

“If oil were to go another $5 lower, we could see another mini-scare in equities.”

Brent crude fell to a four-month low on Friday on signs the global surplus will grow following a historic agreement on Tehran's nuclear program.

Emirates NBD lost 2.3% on almost four times its average three-month daily trading volume. The drop followed the stock’s best weekly gain of the year on the back of a 41% increase in first-half profit. Emaar, the parent of Emaar Malls, retreated 1%.

Abu Dhabi’s ADX General Index retreated 0.4%. Qatar’s QE Index slipped 0.3% and Kuwait’s SE Price Index and Oman’s MSM 30 Index both slid 0.1%. Bahrain’s BB All Share Index was little changed.