Abu Dhabi – Mubasher: First Abu Dhabi Bank (FAB) hiked 5.8%, the biggest increase since April 2017, during Sunday’s early trading session.
By 01:18 pm UAE time, FAB’s stock trimmed its gains to 2.85% at AED 15.14 per share.
The bank also revealed its plan to raise the foreign-ownership limit on its stock, following its regional peers, Bloomberg News reported.
The UAE’s biggest lender eyes increasing the capital for foreign ownership to 40% instead of 25%.
Moreover, shareholders still need to approve the change at a meeting on 25 February.
“The higher cap for foreigners could allow the Abu Dhabi-based lender to earn a higher representation within emerging markets benchmarks compiled by MSCI Inc. and FTSE Russell, triggering inflows of as much as $766 million,” Mohamad Al Hajj, an equities strategist at the research arm of EFG-Hermes Holding Co. in Dubai, commented.
