Dubai, Abu Dhabi stocks fall 7pc on opening
Dubai, November 30, 2009
Dubai stocks fell 6 per cent as the market reopened for the first time since the emirate called for a delay in repaying billions of dollars in debt, spooking global markets.
Market watchers were expecting the index to drop by 10 per cent daily maximum, lead by builders and banks.
Emaar, Arabtec, Deyaar, Almadina, AirArabia and DFM shares fell more than 9 per cent at the opening. The index stood at 1970 points.
The Abu Dhabi Securities Exchange index fell 7 per cent and stood 2703 points.
'We are probably going to see limit down, unless some sort of clarification of a plan or anything that would alleviate investor concerns comes out in the morning,' said Haissam Al Arabi, head of hedge fund Gulfmena Alternative Investments. 'Dubai will take Abu Dhabi down with it.'
Investors wanted more information about conglomerate Dubai World and its main property subsidiary Nakheel, and reassurance that close to $60 billion in debt, most of it owed to local lenders, would be repaid.
Abu Dhabi will 'pick and choose' how to assist debt-laden neighbour, a senior Abu Dhabi official said.
'We will look at Dubai's commitments and approach them on a case-by-case basis. It does not mean that Abu Dhabi will underwrite all of their debts,' he told Reuters by phone on Saturday. - Reuters