Dubai World’s uncertainties plunges stock market

Dubai World’s uncertainties plunges stock marketMedia reports claiming state-owned conglomerate-Dubai World may offer only 60 cents on the dollar to creditors did not go well with investors on the bourse, plunging Dubai's index on Sunday.

Reports claimed that Dubai World is mulling over two options-equity swap for property assets of Nakheel and no guarantee or 60 percent repayment over seven years and a government guarantee. Both of these options are being considered disadvantageous for the investors.

Investors are not interested to get assets in Nakheel, having net tangible assets of 73.7 billion UAE dirhams and who developed islands, shaped like palms and a map of the world.

Meanwhile, Dubai's index reported biggest ever fall of 3.5 percent while Kuwait's benchmark made its largest gain for more than six months. Stocks of Emirates NBD and Dubai Islamic declined 4.9 percent. The index of Abu Dhabi too declined 0.6 percent to retreat from Thursday's month-high.