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| Arabia |
| Dubai & Abu Dhabi markets plunge on debt woes |
| 2009-12-01 |
| [Al Arabiya Latest] Stock markets in the Gulf emirate of Dubai and its neighboring capital of Abu Dhabi fell sharply on Monday and then ground to a halt amid a lack of buyers after Dubai World's shock proposal to suspend debt payments. Dubai's benchmark DFM Index dropped by 7.30 percent as leading securities, including construction and finance, plunged almost by the maximum-allowed limit of 10 percent at the opening, which followed the four-day Eid holiday. The market was trading in the midday session at 1,940.36 points, down 152.80 points from Wednesday's close, just before the Dubai government's shock announcement it wants to freeze debt repayments by Dubai World conglomerate for at least six months. The DFM Index finished trading on Wednesday at 2093.16, up around 28 percent this year, though still two-thirds below its all-time highs two years ago. The financial market of oil-rich Abu Dhabi also reacted negatively to Dubai's debt woes, dropping 8.24 percent to 2,670.44 points in midday deals. The two markets have so far shed around $10 billion of their market capitalization. Trading almost froze in both markets amid high offers to sell and negligible offers to buy, with Dubai market registering only 31.5 million dirhams ($8.6 million) in turnover -- less than 10 percent of average daily trade this year. "This was expected because markets have panicked over exaggerated reports in the Western media," Al-Fajr analyst Hamam al-Shamaa told AFP. "We expect to see many foreign portfolios withdrawing from the market. Their exit obviously terrifies local investors," he said, adding that the drop will continue on Tuesday. "I do not expect investors to enter the market. Tomorrow will most likely be a similar day," he added, pointing out that the markets go into another four-day holiday starting Wednesday. But he expected local markets to bounce back after the holiday. "I expect good news during the holiday," he said. |
| Posted by:Fred |
| #4 CHINESE MILITARY FORUM > HMS TITANIC IS GOING /FOLLOWING AFTER THE USS TITANIC | BRITAIN'S HSBC HOLDINGS, NYSE, CITIGROUP, NYSEC MOST AT RISK IN DUBAI DEBT CRISIS [ + RBS = Royal bank of Scotland,Stabdard Chartered, Lloyd's, + HSBC whom control US$30.0BILYUHN in loans to Dubai World Group]??? |
| Posted by: JosephMendiola 2009-12-01 22:41 |
| #3 what is never mentioned is this is a result from shariah finance law. Risky loans with no interest. |
| Posted by: newc 2009-12-01 10:48 |
| #2 Abu Dhabi has really stepped up on this one! Bailing out their spendtrift partner without much hesitation is admirable. Esp considering their thrift and percevierence and the complete lack of such by Dubai. Honer is still alive in the Emirates. |
| Posted by: 746 2009-12-01 09:56 |
| #1 BHARAT RAKSHAK/TOPIX >INVESTORS FACE HUGE LOSSES AS DUBAI [Govt] ABANDONS DEBT COMPANY [Dubai World Group]. |
| Posted by: JosephMendiola 2009-12-01 01:20 |