Nakheel reports 3.64 bn loss,markets tumble

Giant real estate developer Nakheel,at the centre of Dubai Worlds debt crisis,has reported a loss of over 13 billion dirhams US3.64 billion in the first six months of 2009,after a massive writedown of asset values. The Dubai Financial Markets benchmark index dropped 6.3 per cent at the close,building on steep declines since Monday. The bourse in Abu Dhabi tumbled 2.8 per cent.

On the other hand,Nakheels 3.5 billion Islamic bond hit record lows on increased concern over default on Wednesday,as analysts said time has run out for the issuer to agree a voluntary debt standstill with creditors.

Another real estate heavyweight Emaar also lost 9.86 per cent amid the highest volume of a single stock traded yesterday.

Nakheels bond,a litmus test for Dubai Worlds planned 26 billion restructuring,matures on December 14 but a two-week grace period allows the issuer until December 28 to repay.

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