Monday, December 07, 2009

Emaar shares plunge as UAE markets tumble

Looks like all the High net investors (HNI's) investors are going to soon be HNS (High net suckers). Emaar tried hard to raise funds in early 2008 but due to the US market crash, the Indian market went soft. Now the sand shifted under their own feet. I wonder how Indian regulators like SEBI and all the Indian stock brokering underwriters didn't flinch a bit examining the Emaar books. It goes to show rigged the Indian stock market is. The Reliance power script is still trading at 145, far from the peak it reached from the IPO. Investors in India have to be super careful. Trust no one should be the Ekam Sat when it comes to Indian markets. As far as Shah Rukh goes, he can entertain the Sheiks this new year and make up for his losses in the Dubai market. What happens to the poor suckers who lost their shirt and cannot shake a leg ?

Emaar shares plunge as UAE markets tumble AFP/File – A view of Dubai's Marina area shows high-rise buildings being built by Emaar. Shares in Dubai's …

by W.G. Dunlop W.g. Dunlop – 2 hrs 33 mins ago

DUBAI (AFP) – Shares in Dubai's giant property developer Emaar dropped the maximum-allowed 10 percent on Monday as stocks in the United Arab Emirates took a fresh tumble over Dubai's debt woes.

The Dubai exchange slumped 5.84 percent and Abu Dhabi's market dropped 1.68 percent, after both on Sunday had recovered some of the heavy losses they sustained last week.

Emaar, developer of the world's tallest building, Burj Dubai, led the downward charge on the Dubai Financial Market. Emaar shares dropped the maximum 10 percent.

The company's shares had closed 3.55 percent up on Sunday, following heavy losses last week.

By its close the DFM had settled at 1,744.83 points, a day after a rise of 1.18 percent, to 1,853.13 points.

The Abu Dhabi Securities Exchange dropped to 2,628.24 points at the close of trading on Monday, a day after having closed up a hefty 3.89 percent at 2,673.12 points.

Wadah Taha, chief investment officer at the Dubai-based Zarooni Group, attributed the continued troubles in the two exchanges to the lack of information on developments regarding the debt-laden Dubai World conglomerate.

"I think the fear is still there, the fear which affects the market sentiment and investor psychology," Taha said.

"The main fear today is due to the meeting between Nakheel and its creditors," he said. Nakheel, which is part of Dubai World, is reportedly to meet with its creditors this week to discuss rescheduling its debts.

There is also a lack of clarity regarding which banks and companies are exposed to Dubai World, Taha said.

"The picture needs to be more clear, more transparency is required," he said. "The volatility of both markets will remain high unless we deal with the issue of transparency."

Meanwhile, Saudi Arabia's exchange fell slightly on Monday, closing down 0.99 percent. Its TASI index closed 0.33 percent up on Sunday at 6,309.05 points, but fell to 6,246.50 points by its close on Monday.

The Kuwaiti stock market was likewise down, closing 0.79-percent lower, at 6,678.9 points, while Bahrain's small exchange dropped slightly, closing at minus 0.07 percent.

Bucking the trend, Qatar and Oman's stock markets were up on Monday.

Qatar's exchange rose 1.06 percent, closing at 7,132.26 points, while Oman's market went up 0.32 percent, to close at 6,302.170 points.

Both the Dubai and Abu Dhabi markets suffered heavy losses last week over Dubai's debt troubles. The Dubai index plunged 12.5 percent over a two-day trading period, while Abu Dhabi's slumped 11.6 percent.

The sharp falls came after Dubai on November 25 requested a freeze of payments on the debt of its largest conglomerate, Dubai World, which is liable for 59 billion dollars.

The request raised fears of a debt default by Dubai and sent jitters through global financial markets. The emirate's debts are estimated to total at least 80 billion dollars, with some estimates as high as 120 billion dollars.

On Monday, Dubai department of finance head Abdulrahman al-Saleh said Dubai World could sell some of its assets in the United Arab Emirates and abroad to strengthen its financial situation.

"The sale of assets is a normal measure to strengthen the group's financial situation in these circumstances," Saleh said in an interview with Al-Jazeera television.

He also reiterated the Dubai government does not guarantee Dubai World's debts, but said the "Dubai Financial Support Fund," which he chairs, "has helped companies affected by the financial crisis, including Dubai World."


Anonymous said...

Debt (Housing Loan?) is Death

Monday, December 7, 2009
What Is India’s Biggest Bubble?

The bubble has been fuelled by cheap money from banks, junk IPOs and a lot of PE (Parallel Economy) money or what is also called as ‘Black Money’. Because of all this the common man is unable to afford one of the basic necessities of life. This was the same thing that happened in places like America, Dubai and even Japan almost two decades ago. The reasons might be different, but the money all chased a single asset class that caused Empires to collapse.

Bindaas Bhai said...

U guys just dream. Look at the work force that India has. Don't compare Indian economy with US or others.

And in India housing is still at infant stage.

Our fundamentals r strong and our economy is going to boom..

buy now or buy at 200% after 2 years.

Bindaas bhai

Anonymous said...

Sundaas Bhai, its amazing! You seem to have made a comeback to public demand!! and the right kind of provocative statement too!!

Anonymous said...

The Option ARM Kingpins: Who Holds the Elusive Option ARMs?

Anonymous said...

The moratorium idea on Option ARM's is a good one. The only impediment is -
1. Employment rate improving. FED itself is not saying it will take 5-6 years for employment situation to normalize.
2. Dollar crisis not happening. The dollar seems to be in a death spiral and if the fed tries to up the interest rate the payment on the interest for the deficit will go to trillion $+
3. The real estate situation not worsening further. Which seems very unlikely. Govt./FHA tax deduction of 8000 plus other incentive is resulting in housing inventory continuing to rise plus foreclosures are also going up. Net - Net housing is bound to deteriorate from here. The only thing which might help is massive inflation..

Anonymous said...

I dont know why u call sundaas bhai. he is just giving is opinion.

In film PAA, there is a dialogue "shit ke baare mein nahi sochoge tho fit kaise rahoge"

Bindas Bhai said...

I have decided not comment for sometime in this blog. Kindly note that the above Bindas Bhai is an impostor and not real.

Bindas Bhai

Anonymous said...

@$$hole Sundaas ke Keede BB.

Economy is booming for leeches like you.

80% of population in India is living at less than Rs 100 a day and you beat your chest.

Saale 85 crore logon ki haaye lagegi to you will get HIV virus and will get slow rotten death.

Think of the poor indians b4 u speak asshole

Anonymous said...

Suckers have to run this blog. Forget BB tthey will bring their mothers and wives to save this blog. ha haha

Bindas Bhai said...

Abusing like this wont help this site nor the people who read.

Bindas Bhai

Anonymous said...

I think now, even the diehard RE crash blogger, is losing heart. But gentleman have conviction. RE is dying..Two more years..would bring light to our side of story.

RE is in a long term decline.That part is sure..Just that we have to nourish ourselves to tell our story when the time comes...and that day is not too long..


Jayant said...

@ K. Gokul.
"But gentleman has conviction"

Thank you for the encouraging words..!

shailesh said...

Asset bubble bigger threat than inflation: RBI

Reserve Bank of India (RBI) Governor D Subbarao today said formation of asset-price bubbles was a bigger threat than consumer inflation the world over.

“There is no evidence yet that asset-price bubbles are being formed. The threat of consumer inflation is muted,” he said at a round-table discussion organised by CNBC-TV18.

“Supply-side forces are working on inflation. And, the monetary policy is an ineffective instrument to rein in supply-side inflation. The main challenge for RBI is to support growth without compromising on price and financial stability, he added.

Anonymous said...

“There is no evidence yet that asset-price bubbles are being formed" Reserve Bank of India (RBI) Governor.

This confirms that he is the apostle of ignorance, shameless and the puppet of Real Estate Lobby.

Anonymous said...

Maybe D Subbarao is just one of the first two monkeys of Gandhi!!

Either he has his eyes shut or his ears shut..and is just being a monkey..

Anonymous said...

Hilarious interview!

So during the boom years, the likes of these kind of people entered(I remember a similar movement during the Dot Com years..textile companies were moving into Dot Com's - remember Arvind Mills anyone?)...

Now that we are seeing the exit of such opportunistic jokers and with the admittance of massive can safely see the end of the Housing "boom"...

Shriniwas K said...

@Anon above, Unitech a telecom company converted to real estate and sold all telecom assets to Norways Telenor. Now Unitech will suffer same fate.

If the market tips over 20 % food inflation, I see hyperinflation in India, make sure you have hedged rupee against such a scenario. I cant believe India food prices are higher than food prices in US and EU ..

Anonymous said...

Dear Jayant Bernard Shaw,

If only i could ever meet you, perhaps I could throw the smugness out of you.

Tell me something, lad.

Are you one of those who has had education in tier-3 cities of India and managed to come to US on a fake visa???? (and somehow manage to find a job, driving cabs or pizza delivery)

Cos the swagger you displayed is most notably found among those types???

You sure seem to be one of those ilk. However,you surely understand I am zealous to apologise if the case is otherwise, dont you??


Anonymous said...

Shriniwas K .. reg your comment "I cant believe India food prices are higher than food prices in US and EU"

I stayed in the US for 6 years before coming to India a couple of years back .. Believe me .. I felt something was wrong with me all this while as I thought I was the only one expressing sticker shock on seeing prices in India .. everything is priced equal or higher than in the US.. take a 2L bottle of Coca Cola .. never have I paid more than a dollar / dollar and a quarter .. in India u are out Rs 60 straight .. Milk @ $1.5 / gallon in NJ .. Mumbai .. 22 Rs a litre i.e. Rs 83 / Gallon ~ 2$ per gallon
Never spent more than 200 USD a month in groceries for 3 ppl .. even 200USD when we spent really lavishly and entertained a ton of guests .. over here one trip to a Food Bazar or Star Bazar and boom .. u are down 3-4 K with just a couple of polythene bags to show

apples, pears, oranges, bread ..
name it and u will find things more expensive .. choclates, shoes, clothes, toys, TVs, electronics, furniture .. and the last time I checked .. we were still considered to be a third world country

But yes there is a third world aspect to this .. which is the quality .. the stuff (even the made in China shit) you get in India is way way inferior in quality to what you'd get in the US

Real Estate .. is a different story altogether .. Bankers, Broker and Builder .. saari Choro ki mandali .. 1 Cr won't get you a half way decent 2 bedroom in Andheri .. u will get a nice 3 bed house (not an apartment) with your own garage and backyard in an equivalent suburb of New York (about an hour's commute to the City) for 200K

I am seriously thinking of going back to the US

Anonymous said...

Anno 2:29 AM

I completely agree with you, I have been to US since last 3 years & been visiting India every year.I feel the same way you feel. Grocery bill for 2/3 people can never go above 200 $ where as in India for same amount you can hardly spend 2 weeks worth grocery !!apart from that also look at the clothes , shoes , games etc items are cheaper in US !! & if you take in to account the purchasing price parity India is very expensive but it does not have even 10 % of amenieties provided by government in UD & EU.There is no way it can be justified that price level is so high in India unless you think that India is on the path to become one of the chaotic nation they way it is in Africa & East Europe or south America, these are the signs of a nation where corrupt politian are rulling the country & nothing like governance,I am not sure what will be the future of our country down the line next 20 years !!

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