(Source: The Globe and Mail)
The Toronto stock market closed sharply lower Thursday amid news from Dubai that the government’s flagship investment company is in deep financial trouble.
The S&P/TSX composite index (TSX-I11,436.80-200.10-1.72%) dropped 200.1 points to 11,436.8 after the Dubai government said it would restructure Dubai World, which has developed a slew of extravagant real estate projects and is thought to have debts totalling around $60-billion (U.S.). It also announced a six-month standstill on repayments of its massive debt.
The Dubai government’s announcement came after the local stock market closed and at the start of the Eid holidays, during which most offices will remain shut until Dec. 6.
Read the full article by Malcolm Morrison, “TSX rattled by Dubai fears” in the Globe and Mail (Nov 26, 2009).