Tuesday 15 December 2009

Dubai Shares Drop, End 3-Day Rise, on Dubai World Debt Concern

Dubai shares fell for the first time in four days as investors seek greater clarity on the restructuring of Dubai World’s debt.

Dubai Investments PJSC, owner of stakes in more than 40 companies, fell 9.1 percent and discount-carrier Air Arabia PJSC declined the most in two weeks. The DFM General Index retreated 1.5 percent to 1,843.27, paring the gain in the past four days to 20 percent. The measure has lost 12 percent since Dubai World asked creditors for a “standstill” agreement on its debt repayments on Nov. 25. The ADX General Index dropped 1 percent.

Abu Dhabi provided $10 billion to help Dubai World, the state-owned holding company, avoid defaulting on a $4.1 billion bond payment by Nakheel PJSC. The rest of the money will cover Dubai World’s interest and operating costs until the company reaches a standstill agreement with its creditors.

No comments:

Post a Comment