Dubai: The Abu Dhabi bourse’s main index ended the day nearly flat on Wednesday after climbing 2.67 per cent a day earlier on gains in First Abu Dhabi Bank’s (FAB) share prices.
The Abu Dhabi Securities Exchange general index closed at 5,128.56, down 0.04 per cent, as FAB’s share prices slid by 0.78 per cent. The shares had jumped after an MSCI rebalancing that reduced FAB’s weightage on the main index to 0.21 per cent from 0.22 per cent.
It is unclear why FAB’s share prices jumped on the reduced weightage but analysts say it is likely because of an earlier announcement from FAB in July about possibly removing its foreign ownership limits. Analysts say the MSCI’s reaction to that limit removal could drive in millions of dollars.
Elsewhere in the UAE, the Dubai Financial Market index continued to rise on Wednesday, gaining 0.24 per cent to close at 2,757.80 as powerhouse Emaar gained 1.01 per cent.
Damac Properties also rose by 3.47 per cent, as Emirates NBD share prices went up by 0.44 per cent.
The DFM index has been rising by less than 1 per cent over the past three trading sessions, bringing its gains since Monday to 1.55 per cent, which is still lower than the 1.9 per cent decline it saw on Sunday as trade tensions between the US and China escalated.