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Mining industry

Global Markets Turmoil as Dubai World Seeks Debt Repayment Delay

Strategic Insights

— 1 min read

The world market experienced turmoil on Thursday, November 26, 2009, as Dubai World sought to delay repayment on much of its debt. As a result, the S&P/TSX Composite Index, the main index on the Canadian stock market, slid 200.10 points, or 1.72 percent, closing at 11,436.80. The decline was reflected in the performances of key players such as Goldcorp Inc., Kinross Gold Corp., and Barrick Gold Corp., which saw losses of 3.05 percent, 2.83 percent, and 1.36 percent, respectively.

Key Takeaways:

  • The S&P/TSX Composite Index dropped 200.10 points, or 1.72 percent, closing at 11,436.80 on Thursday, November 26, 2009.
  • Goldcorp Inc. lost 3.05 percent, Kinross Gold Corp. was 2.83 percent lower, and Barrick Gold Corp. lost 1.36 percent.
  • Suncor Energy Inc. and Royal Bank of Canada both reduced more than 2 percent in value.
  • Dubai World's attempt to delay debt repayment drove down stocks, bonds, and currencies across developing countries.
  • The MSCI Emerging Markets Index of stocks dropped 2.1 percent.
  • The Canadian dollar weakened against its U.S. counterpart after reaching a one-week high on Wednesday.

Statistics:

  • S&P/TSX Composite Index: -200.10 points, or 1.72 percent, closing at 11,436.80.
  • Goldcorp Inc.: -3.05 percent loss.
  • Kinross Gold Corp.: -2.83 percent loss.
  • Barrick Gold Corp.: -1.36 percent loss.
  • Suncor Energy Inc. and Royal Bank of Canada: Both reduced more than 2 percent in value.
  • MSCI Emerging Markets Index: -2.1 percent drop.

Sources:

  • Xinhua via COMTEX, November 26, 2009.
  • Comtex SmarTrend Alert, as of November 22, 2009:

* GG (Goldcorp Inc.) indicated an UPTREND on November 4, 2009.

* KGC (Kinross Gold Corp.) indicated a DOWNTREND on October 27, 2009.

* SU (Suncor Energy Inc.) indicated an UPTREND on November 16, 2009.

  • Comtex News Network, Inc. - 2004-2009.

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