Equities Flat as Investors Await Result of Dubai World Talks

DUBAI - UAE shares were little changed on Monday as investors stayed on the fence and kept an eye on the outcome of state-owned Dubai World’s first meeting with its creditors, after it asked for more time to pay its maturing debts.

By (Rocel Felix)

Published: Tue 22 Dec 2009, 11:32 PM

Last updated: Thu 2 Apr 2015, 3:48 AM

Dubai index mover Emaar Properties gained by 2.1 per cent to Dh3.90, but Emirates NBD, the country’s biggest bank by assets, weighed on the index, losing by 4.8 per cent to Dh3.19.

In Abu Dhabi, the Abu Dhabi Commercial Bank led losers, declining by 4.8 per cent to Dh1.62.

The main index of the Dubai Financial Market shed 0.2 per cent at 1,828.88, while the benchmark index of the Abu Dhabi Securities Exchange slightly fell by 0.8 per cent to 2,727.83.

“Investors weren’t interested to take or open new positions while the Dubai World issue is still outstanding,” said Marwan Shurrab, vice-president and chief trader at Gulfmena  Alternative Investments.

Conglomerate Dubai World, sent shockwaves across global markets when it asked its creditors last November 25 to restructure $26 billion of its debts. Only $22 billion needs to be restructured.

On December 14, Abu Dhabi poured $10 billion into Dubai, of which $4.1 billion was used to pay the Islamic bond of its property unit, Nakheel PJSC.

Dubai World had its first lengthy meeting with its creditors Monday morning at the World Trade Centre, where it was expected to make a presentation of its debt profile, and reiterate its plea for a debt standstill.

“Most investors are likely to keep a wait and see attitude until they are given more clarity on the debt issue, they want as well to know what the stipulations of the $10 billion fund provided by Abu Dhabi before they can make decisions or plan ahead,” said Shurrab.

Matthew Wakeman, managing director of cash-and-equity-linked trading at EFG Hermes, said the bourses are likely to trade sideways this week, as the Dubai World meetings with lenders, will be a drawn out process.

“We are unlikely to hear any news and maybe even months. It’s important to look at where the market is now, and think whether we are in good enough shape to be trading at pre-Dubai World debt announcement levels. The answer has to be a resounding no, and we now need to consolidate and look to fourth quarter results for further guidance on direction.”

rocel@khaleejtimes.com