MIDEAST STOCKS-UAE markets braced, await info as Asia rebounds
* UAE markets seen plunging in wake of Dubai debt woes
* Statement expected from Dubai government
* StanChart, HSBC shares rebound in Asia
DUBAI, Nov 30 (Reuters) - Markets in the United ArabEmirates were braced for sharp declines on Monday as theyawaited more information from government authorities on DubaiWorld's debt restructuring plans while big banks exposed to theemirate rebounded in Asian trading overnight.
UAE banks, property and construction firms will stand in theline of fire as investors weigh up the damage caused by lastweek's surprise move to restructure government-controlled DubaiWorld [DBWLD.UL] and its property arm Nakheel [NAKHD.UL].
But in Hong Kong, shares of HSBC (0005.HK) (HSBA.L) andStandard Chartered (2888.HK) (STAN.L) rebounded overnight asinvestors viewed Friday's drubbing on fears of exposure to Dubaias overdone. [ID:nHKG44687]
"The market over-reacted on Friday," said Phillips Securitiesanaylst Rock Lam in Hong Kong. "Over the weekend, UAE has showedsupport to Dubai's debt issue so the market is quieting down andshares are rebounding."
"Although Dubai World is extending its repayment period, itwill not pose an impact on banks' earnings," he said.
UAE markets, opening after a four-day holiday, are expectedto fall by the maximum daily limit of 10 percent as banks,property and construction firms face investor ire over moves torestructure the Dubai economy. [ID:GEE5AS08D]
Regional banks such as Emirates NBD ENBD.DU andMashreqbank MASB.DU will face selling pressure as investorsanticipate write-downs and loan provisions. National Bank of AbuDhabi NBAD.AD was the first local bank to come out publiclywith its exposure, saying it has $345 million in debt to DubaiWorld and related entities.
Arabtec ARTC.DU, the largest construction firm in theMiddle East, will weaken on doubts about contract payments fromdebt-laden Nakheel.
With pressure on the real estate market, Emaar EMAR.DU andUnion Properties UPRO.DU will suffer as well and drag down regional listed firms such as Abu Dhabi-based Aldar ALDR.AD andSorouh SOR.AD lower.
"We are probably going to see limit down, unless some sortof clarification of a plan or anything that would elevateinvestor concerns comes out in the morning," said Haissam AlArabi, head of hedge fund Gulfmena Alternative Investments."Dubai will take Abu Dhabi down with it."
Meanwhile, officials from the Dubai government or DubaiWorld are expected to issue a statement after the UAE centralbank moved to allay concerns about the banking sector by settingup an emergency liquidity facility on Sunday.[ID:nGEE5AS075]
"It might support the market a little bit but I don't thinkit is enough," said Shawkut Raslan, head of brokerage at PrimeEmirates brokerage.
UAE markets open at 0600 GMT on Monday after closing for theEid al-Adha holiday on Nov. 26.
(Reporting by Enjy Kiwan in Dubai and Michael Flaherty inHong Kong; Writing by Thomas Atkins) ((thomas.atkins@thomsonreuters.com; +971 4366 4200; ReutersMessaging: thomas.atkins.reuters.com@reuters.net))
Source: Reuters
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