Dubai Stocks Are Having Their Worst Week Since 2016
(Bloomberg) -- Dubai stocks are giving investors an update on the woes confronting the local real-estate industry.
The DFM Real Estate & Construction Index has fallen about 7 percent in the past five days, the biggest weekly drop since May 2016. All but one of its members are down by at least 2 percent this week, compared with an overall 0.2 percent retreat in an emerging-market gauge for the sector.
Oversupply is casting a cloud over Dubai developers and real-estate companies at the same time that the region confronts a slump in oil prices. Emaar Properties PJSC, the sheikhdom’s biggest developer and the stock with the third-largest weighting in the local benchmark index, last month put on hold plans to sell new debt as interest rates increased. Shares of subsidiary Emaar Development PJSC had the worst week since its 2017 market debut.
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