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Dubai index drops 1.5pc on Tuesday

Shares on the Dubai Financial Market (DFM) fell on Tuesday following a four day gain of 20 percent…

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December 15, 2009 8:50 by



Shares on the Dubai Financial Market (DFM) fell on Tuesday following a four day gain of 20 percent, reports Bloomberg. The DFM General Index fell 1.5 percent to 1,843.27.

The benchmark fell 12 percent since Dubai World announced it has requested a six-month standstill on a $26 billion debt.

On Sunday, the Abu Dhabi government gave the Dubai government $10 billion to help state-owned companies cope with their debt payments, sparking a rise in Dubai shares.

“Markets are in consolidation phase after a tough couple of weeks,” Khaled Masri, a partner at Rasmala Investment Holdings in Dubai, told Bloomberg. “The next two or three months will be critical. The worst thing that can happen is no information on the debt situation which could create a vacuum of rumors and speculation.”



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