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MSCI adds etisalat shares to EM index

Dubai - The UAE telecom operator along with the world's biggest e-commerce company Alibaba joined the index in the latest announcement by the index compiler.

Etisalat has been included in the influential MSCI Emerging Markets (EM) Index that will boost the UAE's overall weighting in the index and is likely to attract passive inflows of more than $360 million.
The UAE telecom operator along with the world's biggest e-commerce company Alibaba joined the index in the latest announcement by the index compiler. The changes were part of the quarterly adjustments MSCI makes to its indexes, which it says are tracked by $9.5 trillion in assets. Until now, MSCI did not include US-listed companies - like Alibaba - in its specific country indexes.
Last Thursday, etisalat stocks traded amid speculation MSCI may add the company to its emerging markets index after the telecom operator opened its shares to foreign investment in July this year. On June 22 the Federal Government allowed non-Emirati shareholders to own up to 20 per cent of its share capital.
Etisalat shares jumped more than 28 per cent since the government-controlled company announced five months ago it would allow foreign nationals direct ownership in the firm. The government limited foreign ownership of the shares to 20 per cent, but foreign shareholders have not been given the voting rights.
On Thursday the index heavyweight at ADX was the volume leader with more than 84 million shares trading but its share price lost around one per cent on speculation about MSCI inclusion.
- abdulbasit@khaleejtimes.com

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