Dubai shares tumbled the most in the world, erasing almost all of this year’s gains, on investor concern that Dubai World is struggling to restructure debt.
Emaar Properties PJSC, the United Arab Emirates’ biggest real-estate developer, slumped 9.8 percent and Emirates NBD PJSC retreated to the lowest since Sept. 3. The DFM General Index plunged 6.1 percent, the biggest fluctuation among global benchmarks tracked by Bloomberg, to 1,638.05. The measure, which closed at the lowest since July 13, has tumbled 22 percent since Dubai said on Nov. 25 that it was seeking a “standstill” agreement on Dubai World’s debt.
Dubai World last week began talks with banks to restructure $26 billion of debt, including a $3.52 billion Islamic bond of property unit Nakheel PJSC maturing on Dec. 14. Dubai World held talks with its six main creditors yesterday, a banker familiar with the negotiations said. Debt restructuring by Dubai state- run companies may almost double to $46.7 billion as more of the emirate’s businesses could need help making payments, Morgan Stanley said.
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