(Bloomberg) -- Qatari stocks retreated the most in the Middle East, extending their losing streak to a third day.

The main index declined 0.9 percent, the most in 10 days, led by a drop in Masraf Al Rayan. Morgan Stanley analysts last week downgraded Qatari stocks to underweight from equal-weight, citing the market’s relatively high valuations in an emailed note. The gauge has been trading at a premium to emerging-market peers since June.

Still, the estimated earnings per share for the gauge’s 20 members has risen in March, poised for its longest monthly rising streak since at least early 2008, when Bloomberg began tracking the data.

MIDDLE EASTERN MARKETS:

• The QE Index deepens loss this year to 4.1%, poised for its worst first quarter since 2015
  • 12 out of 20 members fall, 5 rise and 3 are unchanged
  • READ: Danger Sign for Qatar Stocks as Neighbors Lure Foreign Investors
• Dubai’s DFM General Index adds 0.2%, while the ADX General Index in Abu Dhabi declines 0.3%
  • Dana Gas rises 3.4% in Abu Dhabi, set for the highest close since Feb. 28
  • READ: Dana Gas Proposes to Buy Back 690 Million Shares in Abu Dhabi
  • First Abu Dhabi Bank has been banned from growing its business in Qatar amid an investigation into the potential manipulation of its currency.
• Saudi Arabia’s Tadawul All Share Index adds 0.1%, led by gains in Al Rajhi and Saudi British Bank
  • Read: Saudi Arabia’s New Rules Set to Raise Islamic Tax for Some Banks

--With assistance from Filipe Pacheco.

To contact the reporter on this story: Abeer Abu Omar in Dubai at aabuomar@bloomberg.net

To contact the editors responsible for this story: Blaise Robinson at brobinson58@bloomberg.net, Dana El Baltaji, Andrew Reierson

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