Dubai stocks plunge to 14-month low
Dubai, June 6, 2010
Dubai's index slumped to a 14-month closing low as worries over the financial health of Dubai Holding and Friday's global equity sell-off pushed investors to the exit.
'There are jitters about Dubai Holding rolling over some of its debt and although officials say it won't need to restructure debts there have been various articles saying this could still happen,' said Zahed Chowdhury of Al Mal Capital.
'This is causing uncertainty,' he added.
On Tuesday, Dubai Holding's main unit said it may resort to asset sales to deal with its debt after posting a $6.2 billion loss for 2009. In late May, Dubai Holding unit Dubai International Capital asked for a three-month delay on debt repayment.
Emaar Properties and Deyaar dropped 3.1 and 1.5 per cent respectively. On Thursday, Credit Suisse issued a report saying Dubai residential property prices could fall another 15 per cent to 20 per cent as oversupply peaks in 2011.
The index fell 1.8 percent to 1,513 points, its lowest close since March 18, 2009.
Abu Dhabi's benchmark also declined, slipping 1.3 per cent to 2,538 points.-Reuters