Dubai stocks plunge again after recovery
December 10, 2009 by Trend PK
Filed under Business News
DUBAI : Dubai’s stock market which opened slightly up on Thursday after leading Emaar cancelled a merger with government entities, plunged again within less than half hour of trading by over four percent.
At 0630 GMT, the Dubai Financial Market index was trading down 4.03 percent, or 61.8 percent, at 1,471.54 points, after it had slightly recovered by 0.4 percent at open.
The market recovered losses later to 2.17 percent, or 33.26 points down, to 1,500.10 points.
Emaar shares had bounced back by some 7.0 percent in early trading before plummeting again by over 6.0 percent. The company’s shares fluctuated since the opening.
Arabtec construction giant also saw its leading shares dropping by almost the maximum-allowed limit down of 10 percent. Union Properties was also down by over 7.0 percent, while Emirates NBD bank dropped five percent.
Emaar said late Wednesday that it has decided to cancel merger plans with the property arm of government-owned Dubai Holding, as the largest Middle East property developer by market capitalisation appeared to distance itself from the heavily-indebted government entities.
In Abu Dhabi, the market was trading down by 1.33 percent at 2,434.24 points, with the construction and real estate sectors leading the drop by 3.06 percent and 2.94 percent respectively.
The markets continue to reel under the impact of Dubai’s debt woes, triggered late November by the government’s request to freeze debt repayments of its largest and most-indebted Dubai World group — liable for 59 billion dollars.
By Wednesday, Dubai’s DFM index had shed over 26 percent of its value since the debt standstill was announced, wiping out all gains made this year.
Dubai stocks plunge again after recovery was first posted on December 10, 2009 at 1:17 pm.
