Dubai shares tumbled for a second time this week, led by Emaar Properties PJSC and Emirates NBD PJSC, as investors sought information about Dubai’s ability to repay debt.
Emaar, the United Arab Emirates’ biggest developer, dropped the most in a week and Emirates NBD, the country’s largest bank by assets, declined for the first time in four days. The DFM General Index slipped 1 percent, trimming yesterday’s gain, to 1,871.57 at 12:08 p.m. in the emirate. The index has lost 11 percent since Dubai World, the state-owned holding company, said on Nov. 25 it would seek a “standstill” agreement on its debt repayments.
“A huge bomb shell is hitting the market as far as this massive uncertainty,” Tudor Allin-Khan, Dubai-based chief economist and strategist at HC Brokerage. “Investors want to know, how will Dubai’s debts be refinanced? Will Abu Dhabi come to Dubai’s aid again and provide another $10, $20, $30 billion? That’s why you have this severe volatility in the market.”
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