Dubai: Emirates leading property developer, Nakheel today asked for suspension in trading of all its (Sukuks) Islamic bonds as Dubai's and its neighbouring Abu Dhabi stock exchange went into a free fall dropping more than seven per cent on opening.
As the trading opened for the first day after long Eid break, shares in the debt ridden Dubai World conglomerate, of which Nakheel forms a part dropped more than 15 per cent.
Even other construction and finance companies in Dubai and other parts of the Emirates plunged by the maximum limit of 10 per cent as the stock market crashed by 7.9 per cent.
But contrary to trends in the Gulf, Asian shares rebounded in morning trading after heavy sell-off in global equities last week. The shares recovered on early reports that
UAE Central Bank had moved to bolster its banking sector to calm fears over Dubai's debt problems.
The Dubai market was trading at 1,942.62 points dropping nearly 150.54 points from Wednesday close while Abu Dhabi also reacted negatively dropping 8.09 per cent to
2,674.79 points in morning trading.
The drop mirror turmoil on the world market after Dubai government announced that it would seek six months delay in repaying debts running to a whopping USD 60 billion.
In what was widely expected, Dubai's master developer Nakheel has asked for a suspension in trading of all its Islamic bonds, the Nasdaq Dubai bourse said today.
PTI
First Published: Monday, November 30, 2009, 15:35