Dubai Index Climbs to 3-Week High on Dubai World Rollover Plan

* username: rupertbu

Dubai shares rose to the highest in more than three weeks after bankers said Dubai World will ask lenders to roll over loans when it presents a proposal to creditors this month.

Emaar Properties PJSC, developer of the world’s tallest skyscraper in Dubai, jumped to the highest in almost two months. Emirates NBD PJSC rose to the highest in more than a week. The DFM General Index jumped 1.7 percent to close at 1,649.14 in Dubai, reversing earlier losses of as much as 0.8 percent. Credit default swaps linked to Dubai fell 20 basis points to 487 basis points, according to prices provided by CMA DataVision in London. Nakheel PJSC bond prices rose.

“As long as there’s some sort of compromise that’s available, the news is very good for the market,” said Vyas Jayabhanu, head of Al Dhafra Financial Brokerage LLC in Abu Dhabi. “Investors are looking for some positive input from the Dubai World fiasco because it’s eroded a lot of confidence after all the negative impact it’s had.”