Analyst: Emaar, DIB, Waha, expected to be upgraded by MSCI

Abu Dhabi: Stock market blue chips such as Emaar, Dubai Islamic Bank, Waha Capital, Aldar Properties, and Dana Gas are expected to be among the stocks included in MSCI’s upgrade from frontier category to emerging markets, according to Analyst Osama Al Ashry.

A member of UK organisation, Society of Technical Analysts, Al Ashry said 10 to 15 companies are expected to be part of the upgrade. Projections say the list also includes First Gulf Bank, Abu Dhabi National Bank, Abu Dhabi Commercial Bank, Union National Bank, Union Properties, and Dubai Investment Company.

“There is still scepticism surrounding the list. For example, no one really knows if Arabtec will be included because it has high volatility. Obviously, other large companies such as Etisalat cannot be on the list because they’re not open for foreign ownership,” he said.

In order to be included in the upgrade by international equity index compiler, MSCI, companies must have a high percentage of foreign ownership, and high liquidity, among other requirements.

As for the effect on stock market trade, Al Ashry did not expect a great impact.

“People tend to buy stocks based on expectations, and then sell based on facts. So, after the companies are confirmed, traders may sell shares, leading to a drop in the index,” the analyst said.