DUBAI (Bloomberg) -- Most Persian Gulf indexes declined on speculation foreigners maybe selling shares to raise funds for investment in Saudi Arabia’s stock market as it opens up to non- nationals. Dubai’s measure rebounded.

Abu Dhabi Commercial Bank dropped for a second day after it sued Morgan Stanley & Co., Bank of New York Mellon Corp. and three securities rating services. Bank Muscat SAOG, Oman’s biggest bank, fell the most in almost three weeks. Burgan Group Holding Co. retreated for a sixth day.
The Abu Dhabi Securities Exchange General Index fell 0.9 percent to 4,328.59 at 12:14 p.m. local time, dropping for a third day. Oman’s Muscat Securities Market 30 Index lost 2.3 percent, while the Kuwait Stock Exchange Index fell 0.1 percent.
“I think we are near the bottom,” Chamel Fahmy, senior regional sales trader at Beltone Securities Brokerage, said in a phone interview from Dubai on Wednesday. “The selling pressure is mainly from foreign initiations which are planning to shift liquidity to Saudi Arabia’s market.”
Deutsche Bank AG, Germany’s largest bank, yesterday said its Saudi unit has concluded its first swap agreements on the kingdom’s bourse. Morgan Stanley was the first to execute a swap agreement, which allows non-resident foreign investors to buy publicly traded shares through intermediaries.
Interest from international investors in Middle East’s biggest stock market is “very high,” Craig Niven, head of Middle East and North Africa equities at Morgan Stanley said.
Abu Dhabi Commercial Bank retreated 2.8 percent to 4.21 dirhams. The United Arab Emirates-based bank yesterday sued Morgan Stanley, Bank of New York Mellon Corp. and three securities ratings services for allegedly rating too highly a structured investment vehicle that collapsed last year.
-----Extremely cheap
Bank Muscat slid 3 percent to 1.665 rials, its biggest one- day decline since Aug. 11. Burgan Group Holding slid 5.5 percent to 860 fils. The Kuwaiti investment company has dropped 33 percent in the last six sessions.
Saudi Arabia’s Tadawul All Share Index fell 0.3 percent, while the Bahrain All Share Index slipped 0.1 percent. Qatar Doha Securities Market Index advanced for the first time in six days, adding 0.9 percent.
The Dubai Financial Market General Index rebounded, increasing 0.9 percent. Emaar Properties PJSC led the gains. The measure closed at its lowest close since October.
“Emaar is extremely cheap,” Fahmy said. “It’s a must buy at these levels for any long term investor.” Emaar climbed 1.8 percent to 9.16 dirhams. The stock closed at its lowest since April 2005. The stock on Aug. 26 was valued at 8.26 times its earnings, the cheapest on record.