Monday, 26 April 2010

Dubai Shares Retreat as Dubai World Restructuring Hurts Demand

Dubai’s benchmark index fell for the first time in three days as Dubai World’s talks to restructure $24.8 billion of debt dampened foreign investors’ interest in local stocks.

Emaar Properties PJSC, the developer of the world’s tallest skyscraper in Dubai, lost the most since April 19. Emirates Integrated Telecommunications Co. dropped 2 percent. The DFM General Index slid 0.7 percent to 1,757.19, bringing the decline this month to 4.7 percent. Abu Dhabi’s ADX General Index retreated 0.4 percent.

“Foreign investors are still reluctant to pull the trigger until the Dubai World issue is resolved,” said Julian Bruce, director of equity sales at EFG-Hermes Holding SAE, the biggest publicly traded Arab investment bank. “Retail investors were expecting at least some buying momentum on the back of good numbers thus far, but as it failed to materialize they see no reason to hold on to stock and are therefore offloading.”

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