Down by 15% to up 5% in a day of drama for DP World

Dubai Ports World, owner of big stakes in Southampton and Tilbury docks, today saw one of the biggest swings in a share price of recent times as the turbulent situation in the troubled emirate took its toll.

The company, the controller of ports across the world, is owned by Dubai World, which is at the heart of the country's financial crisis.

Investors fear that the Dubai government will have to break up and sell the profitable and cash-generative ports operation to provide funds for the restructuring of Dubai World and Nakheel, the country's stricken property development arm.

DP World's shares, which crashed 15% yesterday, fell a further 15% as trade opened today.

The slide was compounded by a damning report on the business. Citing the uncertainty surrounding Dubai World, it dropped its recommendation on the stock from buy to neutral and cut its target for the share price from 65 cents to just 40 cents.

However, the easing of concerns about the country triggered a dramatic rally and DP World ended the trading session ahead by 5%. The Dubai World included DP World in its list of businesses on a "stable financial footing".

The fate of the ports operation is being seen as significant for London. Among the big assets here is the vast tract of land on the Thames near Thurrock in Essex, which will become the huge London Gateway deepwater container port.

Private-equity bidders were reported to have looked at bidding for the business earlier this year, but walked away. Dubai World, meanwhile, has said that it will not part with the ports business.