FAB's Foreign-Ownership Change Lifts Abu Dhabi Stocks: Inside EM

(Bloomberg) -- Stocks in Abu Dhabi reached their highest since September 2014 after the main gauge’s largest constituent implemented a decision to raise its foreign ownership limit.

First Abu Dhabi Bank PJSC shares advanced 5 percent, the most in a month. The raised 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.

HIGHLIGHTS
  • Brent crude gained 1% on Friday to about $71/bbl 
  • Emerging-market stocks added 0.4% during the week ended April 12
  • READ: Aramco’s $12 Billion Bond Deal Fizzles as Sell-Off Extends
  • READ: Bank of America Recommends Bahrain’s 2029 Bonds on Oil, Reforms

MIDDLE EASTERN MARKETS:

  • The ADX General Index rose 2.4%
    • READ: FAB Rises in Abu Dhabi on Implementing Higher Foreign Ownership
    • MORE: Abu Dhabi Pension Fund to Invest $300 Million in Adnoc Pipelines
  • In Dubai, Emirates NBD PJSC advanced 1.7%, the most since April 4. The main index declined 0.1%
    • NOTE: The bank agreed to sell an additional 15.3m shares in Network International, with proceeds of 66.6 million pounds ($87 million)
    • READ: Dubai Islamic Bank Looking at Acquisitions Among Expansion Plans
    • READ: Arqaam Sees Noor Priced at 0.6-0.7x Book in Potential DIB Merger
  • Saudi Real Estate Co. reported a full-year loss of 183 million riyals vs 132 million riyals profit a year ago; revised its dividend recommendation to no dividend
    • Stock fell as much as 6.6%
    • The Tadawul All Share Index dropped 0.4%, ending 4-day winning streak
  • Israel’s TA-35 Index adds 0.8% as of 3:51pm in Tel Aviv
    • 30 members advance, 5 retreat

©2019 Bloomberg L.P.