Emirates NBD raises foreign ownership limit to 40%
UAE indices were pulled higher by global cues, notably EU's 750b euro stimulus
Dubai: Emirates NBD shares shot up 5.91 per cent on Tuesday, with the bank confirming foreign ownership limit has been increased to 40 per cent from 20. This becomes effective from July 22.
On the broader side, UAE markets were led by DFM rallying 1.14 per cent and ADX by 0.43 per cent. Other prominent gainers in DFM are DXB Entertainments, which moved higher by 4.16 per cent, Union Properties by 3.44 per cent, and DFM scrip itself rose by 2.48 per cent.
On ADX, the gains were for Al Qudra, a proper surge by 12.99 per cent, and Esharaq by 7.06 per cent.
The main reason for the momentum was strong global cues on account of the European stimulus package. Europe passed a 750 billion euro pandemic stimulus, which will be financed by a first ever joint European issuance of debt.
The move was hailed as historic since the euro not only has a monetary backstop, but a fiscal backstop as well.
Among other corporate news, Target Engineering Construction, a subsidiary of Arabtec, was awarded a 200 million riyal contract by Saudi Aramco for the replacement of five storage tanks at Ras Tanura Refinery. The stock had already run up significantly in anticipation of the news.