Dubai index in largest fall in fortnight
Dubai's index drops the most in more than two weeks as weak global markets and concerns related to Dubai World's interest rate offer to its creditors dampen investor sentiment.
Dubai World offered creditors a 1 per cent interest rate on two new tranches of debt as part of its restructuring plan, but they rejected it as too low, two sources close to the discussions said on Thursday.
"The news will have short-term repercussions on the market," says Vyas Jayabhanu, had of investments at Al Dhafra Financial Broker.
The index ends 2.3 per cent per cent lower at 1,776 points, in its largest single-day percentage fall since March 29.
Investor sentiment was also hit by weak cues from global markets after US regulators charged Goldman Sachs Group with fraud related to subprime mortgages.
"International markets were battered on Friday on Goldman news. That is not helping sentiment," says Jayabhanu.
Property developer, Arabtec slumps 5.6 per cent after a local daily reports the company drops bid to build a tower in Saudi Arabia.
Emaar Properties falls 3.9 per cent, while lender Emirates NBD ends 2 per cent lower.
Abu Dhabi's index also falls 1 per cent to 2,828 points hurt mainly by Aldar Properties which ends 4.8 per cent lower.
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