Traders at the Dubai Financial Market (DFM)
Traders at the Dubai Financial Market (DFM). Image Credit: Virendra Saklani/Gulf News

Dubai: Dubai Financial Market index rose more than 130 points, or 4.77 per cent to 2,889.81 — the highest daily rise in more than two years on the back of news that Dubai's biggest bank is seeking to raise foreign ownership limit.

Emirates NBD was the top gainer as its shares rose to Dh13.5 — a 14.85 per cent spike — and with traded shares valued at Dh324.32 million.

Dubai stocks recorded 20 gainers and 10 losers, while 4 were unchanged. Total shares traded were valued at Dh634.33 million and volume at 211.9 million.

Dubai Islamic Bank rose 3.12% to Dh5.28, valued at Dh139.14 million.

Other gainers were Emaar, whose shares rose 3.40 per cent to Dh5.17; Gulf Finance House (GFH) Financial Group, whose shared gained 1.30 per cent and real estate giant EmaarDev, up 0.72 per cent to Dh4.18.

Emirates NBD PJSC said on Monday it will implement an immediate increase in its foreign ownership cap from 5 per cent to 20 per cent, in a filing with the market regulators.

The lender announced that it also intends to seek approvals from shareholders and regulators to boost its foreign ownership limit to 40 per cent, according to a statement.

Shares jumped to the highest level since 2007.

Lenders in the six-nation Gulf Cooperation Council are trying to broaden the base of their investors.

Shares of Qatar National Bank, the region’s largest by assets, gained almost 50% since raising foreign ownership to 49% last year. First Abu Dhabi Bank PJSC, the biggest bank in the United Arab Emirates, proposed removing the limit after raising it to 40% in February.

On August 19, the combined traded value on Dubai Financial Market rose to more than Dh1.5 billion after a move by Shuaa to increase its capital base through issuing new shares.

Traded value jumped to Dh1.5 billion, 11 times more than the 30-day daily average of Dh126 million. Out of this, Shuaa’s traded value stood at Dh1.37 billion. It was also the first time this year the local bourse has seen a Dh1 billion or more traded value.