KHALEEJ TIMES, Monday, Apr 15, 2019 | Shaaban 9, 1440
ADX surges 2.4% on FAB's foreign ownership limit
Abu Dhabi stocks rallied 2.4 per cent on Sunday, recording a
four-and-a-half year high as First Abu Dhabi Bank (FAB) surged after it obtained
regulatory approval to increase its foreign ownership limit.
The record upswing was sparked by an announcement by the UAE's largest lender on
Thursday that it had received an approval from the central bank and the markets
regulator to raise its foreign ownership limit (FOL) to 40 per cent from 25 per
FAB shareholders had approved the increase in FOL at the general assembly
meeting in February, and traders had been buying the stock in anticipation of
On Sunday, FAB shares closed at Dh15.58, their highest since May 2014. The index
ended at 5,174 points, its highest since September 2014.In
the past one year, FAB shares have gained 26 per cent, outperforming the Abu
Dhabi index, which has gained 14 per cent. The best performing bank has been Abu
Dhabi Commercial Bank with 40 per cent gains in the same time period.
While Dubai shares were flat on weakness in Emaar Properties, which was down 1.2
per cent, other Gulf markets were also weak. The DFM index fell 0.1 per cent to
Shares of Emirates NBD rose 1.7 per cent after the bank said it had sold more
shares in the London initial public offering of Network International after
exercising a greenshoe option.
In regional markets, Saudi stocks made a lacklustre start to the week as
financial shares fell on profit-taking after robust gains in the Gulf region's
biggest stock market this year. The index ended 0.4 per cent lower, with Al
Rajhi Bank down 0.6 per cent and Samba Financial Group down 1.3 per cent.
It is still up almost 16 per cent so far this year, fuelled by an increase in
foreign fund flows as it entered the FTSE Russell's emerging market index on
Across the rest of the Gulf, Bahrain stocks were up 0.5 per cent, while Kuwait's
market was flat. Egypt's market was down 0.2 per cent.