Dubai stock market soars after Emirates NBD hikes foreign ownership limit

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Emirates NBD, ENBD, Sheikh Ahmed

Dubai - Shares of Emirates NBD hit a 12-year high, while the index saw its strongest day in three and a half years.

By Reuters

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Published: Mon 2 Sep 2019, 12:55 PM

Last updated: Tue 3 Sep 2019, 2:07 AM

The Dubai 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 per cent, its biggest intra-day gain since January 2016, boosted by its largest lender Emirates NBD.

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

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

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

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

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.


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