Blackrock says cut exposure to UAE stocks on signs of excess

An electronic board displaying stock information at the Dubai Financial Market. (File photo: Reuters)

Blackrock Frontiers Investment Trust, part of major global asset manager Blackrock, cut its exposure to United Arab Emirates stock markets last month because of signs the markets were overheating, it said on Thursday.

“We have noted the positive sentiment surrounding both Abu Dhabi and Dubai but are now beginning to (see) signs of speculative excess that warrants caution,” Blackrock Frontiers said in an update on its portfolio.

During January the fund “substantially reduced” its exposure to the UAE, it said.

The fund had total assets of 220 million British pounds ($365 million) at the end of last month. Its 10 largest equity investments include Emaar Properties, which accounts for 2.8 percent of gross assets, and London-listed UAE firm NMC Health, with 2.7 percent.

Blackrock has about $4.3 trillion of assets globally.

Last Update: Wednesday, 20 May 2020 KSA 09:41 - GMT 06:41