Monday , June 17 2019

FAB foreign ownership limit hike lifts Abu Dhabi stocks


Stocks in Abu Dhabi are poised to reach their highest since September 2014 after the main gauge’s largest constituent First Abu Dhabi Bank (FAB) PJSC implemented a decision to raise its foreign ownership limit.
The lender’s shares gained as much as 4.8 percent on Sunday, the most in a month. The increased cap for foreigners could trigger passive inflows of about $730 million from investors tracking MSCI Inc. and FTSE Russell benchmarks by June, according to estimates by Mohamad Al Hajj, an equities strategist at EFG-Hermes in Dubai.
“FAB’s weight in the MSCI Emerging Markets index will increase from about 21 basis points to 32 basis points, putting it in the top 15 banks in EM by weight, from number 33 currently,” he wrote. The ADX General Index rises as much as 2.2%.

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