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    Dubai debt problems rock world markets

    Local markets

    At noon on Friday, the JSE All Share had tumbled 1.69%, led down by losses in gold mining and oil and gas stocks. The local bourse reacted in line with international markets to news of a request from Dubai to the creditors of property developers Dubai World and Nakheel, to postpone debt repayments for the next six months.

    The rand responded by weakening to R7.54 to the US dollar amidst a choppy morning’s trade. Analysts expect the situation to intensify when the US market comes online after yesterday’s public holiday.

    Oil cost $75.01 a barrel at midday, losing 1.30% as investors switched to other safe-haven investments in the uncertainty surrounding the Dubai debt news.

    International markets

    US markets were closed yesterday for the Thanksgiving public holiday.

    The Nikkei fell 3.22% to strike its lowest close in four months, after the dollar weakened substantially against the yen, hurting exporters, and the Dubai news weighed heavily on financial shares.

    The Hang Seng dived 4.84%, the lowest plunge in one day for eight months. Banking stocks were negatively impacted by the debt worries in Dubai.

    In the UK, the FTSE 100 had slid 0.41% as banking shares led the London bourse downwards. Investors were anxious over the potential impact of the debt postponement and restructuring for Dubai World.

    Share price news

    Village Main Reef Gold Mining Company Limited (share code: VIL) soared to R1.30 at midday, a gain in share price of 6.56% after one deal of 5 500 shares. In the electronic equipment sector, Amecor Limited (share code: AER) rose 4.17% after two deals exchanged 10 000 shares, sending the price up to R1.25.

    Moving downwards was Sentula Mining Limited (share code: SNU) whose share price fell to R2.09 at noon after 80 deals traded 597 114 shares, a loss of 10.30%. Sentula released their reviewed interim results this morning, which announced a 32% drop in revenue and a 58% drop in operating profit in the six months ended 30 September 2009. Investment bank Iquad Group Limited (share code: IQG) lost 6.98% to trade at R2 a share, after one sale of 2 500 shares.

    Permalink2009-11-27, 12:22:12, by Natalie Email , 1 comment
    Trackback address for this post: http://blog.sharenet.co.za/htsrv/trackback.php/1560

    Comments, Trackbacks:

    Comment from: bath mateus [Visitor] Email
    Very nice posting. Thanks.
    PermalinkPermalink 2009-12-18 @ 13:35

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