FAB's Rise Boosts Abu Dhabi Stocks Amid Inflows Hopes: Inside EM

(Bloomberg) -- Abu Dhabi stocks climbed to the highest level since November after the United Arab Emirates’ biggest lender sought to increase the foreign ownership limit in its shares.

First Abu Dhabi Bank surged as much as 5.8 percent, the most since April 2017 on an intra-day basis, before ending 1.8 percent higher. The stock was the biggest contributor to the ADX General Index’s 0.6 percent gain. The lender last week said it’ll seek shareholders’ approval to increase its foreign ownership limit to 40 percent from 25 percent, what could lead to inflows from investors abroad.

Other banks in the region including Emirates NBD and Qatar National Bank surged after announcing similar plans last year.

HIGHLIGHTS
  • Equity indexes in Bahrain and Egypt also climbed, while those in Saudi Arabia, Dubai, Qatar, Kuwait and Oman retreated at least 0.3%. Israel’s index was little changed. 
  • Brent crude rose in the four days through Friday to $62.75/bbl, the highest level since November

MIDDLE EASTERN MARKETS:

  • Egypt’s EGX30 Index rose 0.8%, more than any other major gauge in the Middle East, North Africa
    • Extended increase in the past seven sessions to 5.7%
      • CIB rose 1%, Juhayna Food Industries gained as much as 8.7%
    • MORE: Chemical and Value Stocks Offer Path Into Egyptian Market, Naeem Says
  • In Abu Dhabi, the ADX General Index advanced 0.6% to the highest level since Nov. 19.
  • Dubai’s DFM General Index falls 1.1%. Emaar Properties, falls 3.3% and pressures index the most
  • Saudi Arabia’s Tadawul All Share Index slides 0.4%. Banque Saudi Fransi’s 2.7% drop is the biggest drag on the gauge
    • READ: Saudi Fransi Full-Year Profit Misses Estimates
  • In Kuwait, Gulf Bank shares decline 2.1%

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