Dubai’s benchmark stock index headed toward the biggest drop in a week as investor concern over Europe’s debt crisis intensified and economic reports in China and the U.S. missed estimates. Oil retreated in New York.

 

Arabtec Holding Co. (ARTC), the United Arab Emirates construction company whose shares have rallied 114 percent this year, declined 1.5 percent. Dubai Islamic Bank PJSC (DIB), the U.A.E.’s biggest bank complying with Shariah rules, fell for the first time in three days. The DFM General Index (DFMGI) decreased 0.6 percent, headed for the biggest drop since April 9, to 1,669.49 at 11:07 a.m. in Dubai. Saudi Arabia’s Tadawul All Share Index (SASEIDX)  slid 0.7 percent.

 

“Investors are cautious  on worries that Europe’s sovereign debt crisis is back to the forefront,” said Nabil Farhat, a partner at Abu Dhabi-based Al Fajer Securities. Drops in the U.S. stock market last week and in Saudi Arabia  are “keeping investors on the sidelines,” he said.

 

Emerging market stocks declined 1 percent last week and the Standard & Poor’s 500 Index (SPX) retreated 2 percent after Spanish and Italian bond yields fueled concern Europe’s debt crisis is worsening, while China said its economy expanded 8.1 percent in the first quarter, the slowest pace since 2009. U.S. employers added 120,000 jobs in March, less than the median economist forecast of 205,000 in a Bloomberg survey.

Lower Prices

 

Crude for May delivery fell 0.5 percent last week to $102.83 a barrel on the New York Mercantile Exchange after Saudi Arabia’s oil minister said the kingdom is determined to see lower prices. Persian Gulf Arab oil exporters, including Saudi Arabia, Qatar and the U.A.E., supply about a fifth of the world’s oil.

 

Arabtec headed for the biggest drop since April 8, falling to 3.39 dirhams. Dubai Islamic retreated 1.5 percent to 2 dirhams.

 

The Bloomberg PGCC 200 Index (BGCC200), Oman’s benchmark stock index, and Kuwait’s gauge gained 0.2 percent, while Abu Dhabi’s ADX General Index (ADSMI) was little changed. Bahrain’s measure was unchanged.

 

In Israel, the TA-25 Index (TA-25) slipped 0.9 percent. The yield on the country’s 5.5 percent notes due January 2022 declined one basis point, or 0.01 percentage point, to 4.6 percent. 

(Source: Bloomberg)