Wednesday 9 December 2009

Dubai Shares Erase 2009 Gains on Dubai World Debt Restructuring

Dubai shares tumbled for a third day, erasing all of this year’s gains, as Dubai World planned asset sales and Moody’s Investors Service downgraded six government- controlled entities.

Emaar Properties PJSC, the United Arab Emirates’ biggest developer, plunged to the lowest since July after it was cut by Moody’s. Emirates NBD PJSC dropped 4.7 percent after JPMorgan Chase & Co. downgraded the shares to “neutral.” The DFM General Index tumbled 6.4 percent, the biggest fluctuation among global benchmarks tracked by Bloomberg, to 1,533.36. The measure has lost 27 percent since the emirate on Nov. 25 said Dubai World is seeking to restructure debt. The index, down 6.3 percent this year, is the world’s worst performer this quarter.

“It is really a disaster,” said Mohamed Dwaikat, senior broker at Al-Fajer Securities in Abu Dhabi. “Investors are concerned about the banks” and the future of Dubai Holding LLC, he said. “Investors just want to sell off and get out of the market.”

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