Dubai’s stock market climbs as Emirates NBD bank hits 12-year peak

Dubai’s stock market saw its strongest day in three and a half years on Monday as top bank Emirates NBD soared to a 12-year high after it raised the limit on foreign ownership of its shares.

In Dubai, the index surged 4.1 percent, its biggest intra-day gain since January 2016, boosted by its largest lender Emirates NBD.

Emirates NBD surged 14.9 percent to its highest level since October 2007, after the bank raised foreign ownership limit to 20 percent from 5 percent with immediate effect.

The bank also announced its intention to raise that limit to 40 percent in future after seeking approval from its shareholders and the regulatory authorities.

Saudi Arabia’s stock index slid 0.3 percent, extending its losses for the fourth straight session, with Riyad Bank falling 1.9 percent and Saudi British Bank losing 1.3 percent.

Banks continued to weigh on Saudi as receding passive fund flows dampened investor appetite.

Middle East funds plan to reduce investment in Saudi Arabia, a Reuters poll showed last week, displaying a bearishness that has carried over from last month.

The Abu Dhabi index added 0.3 percent, offsetting some losses from the previous session. Emirates Telecommunications rose 0.7 percent and Abu Dhabi Commercial Bank was up 0.6 percent.

Qatar’s index edged down 0.1 percent with market heavyweight Industries Qatar dropping 1 percent.

Source: Reuters