Drake & Scull
DSI
DSI
DIB
DIB
DIB
UPP
UPP
UPP
Deyaar
DEYAAR
DEYAAR
FGB
FGB
FGB
Emaar
EMAAR
EMAAR
MSCI emerging market indices have increased the weights of three UAE companies in their semi-annual review, according to a reported by Egyptian investment bank EFG Hermes, which added that the weight of First Gulf Bank (FGB) has been changed from 0.05% to 0.10%.
Similarly, the MSCI index increased the weight of Emaar Properties and Dubai Islamic Bank (DIB). The developer of the world’s tallest tower saw its weight increase from 0.12% to 0.24%, while the Dubai-based Islamic lender saw its weight increase from 0.03% to 0.05%, which predicts a possible $54.3 million of net inflow.
The change for the Dubai-based developer translates to $267.1 million of net inflows, according to the report by EFG Hermes.
Back in May, MSCI raised its valuation for the UAE and Qatar from frontier to emerging markets, decreasing the weight of several companies by 0.5 owing to restrictions on foreign ownership and fears related to overall liquidity.
According to EFG Hermes, the changes are set to increase Qatar’s weight on the MSCI EM index from 0.63% to 0.92%, while the UAE is set to increase to 0.72%, up from 0.63%.
This will bring in $100.3 millio worth of foreign investment, EFG analysts Simon Kitchen and Mohamed Al Hajj noted in the report.
Worth noting, the MSCI index also added Deyaar Development, Union Properties and Drake & Scull International (DSI) to its separate Emerging Markets Small Cap Index, with weights of 0.10%, 0.10% and 0.04% respectively.
The changes are set to be carried out at the end of November. Moreover, the weight boost moves have already affected the stocks’ performance on the UAE markets on Sunday.
During Sunday’s trades, FGB leaped by 5.34% as 1.98 million shares were traded. Meanwhile, on the Dubai Financial Market (DFM), the real estate sector surged by 1.72%, adding 182.84 points.
The MSCI’s re-valuation of three UAE stocks has contributed greatly to boosting indices today, general manager of Daman Financial Services Walid Al Khateeb told Mubasher, adding that the effect of such re-valuation was evident on FGB in particular.
Similarly, the MSCI index increased the weight of Emaar Properties and Dubai Islamic Bank (DIB). The developer of the world’s tallest tower saw its weight increase from 0.12% to 0.24%, while the Dubai-based Islamic lender saw its weight increase from 0.03% to 0.05%, which predicts a possible $54.3 million of net inflow.
The change for the Dubai-based developer translates to $267.1 million of net inflows, according to the report by EFG Hermes.
Back in May, MSCI raised its valuation for the UAE and Qatar from frontier to emerging markets, decreasing the weight of several companies by 0.5 owing to restrictions on foreign ownership and fears related to overall liquidity.
According to EFG Hermes, the changes are set to increase Qatar’s weight on the MSCI EM index from 0.63% to 0.92%, while the UAE is set to increase to 0.72%, up from 0.63%.
This will bring in $100.3 millio worth of foreign investment, EFG analysts Simon Kitchen and Mohamed Al Hajj noted in the report.
Worth noting, the MSCI index also added Deyaar Development, Union Properties and Drake & Scull International (DSI) to its separate Emerging Markets Small Cap Index, with weights of 0.10%, 0.10% and 0.04% respectively.
The changes are set to be carried out at the end of November. Moreover, the weight boost moves have already affected the stocks’ performance on the UAE markets on Sunday.
During Sunday’s trades, FGB leaped by 5.34% as 1.98 million shares were traded. Meanwhile, on the Dubai Financial Market (DFM), the real estate sector surged by 1.72%, adding 182.84 points.
The MSCI’s re-valuation of three UAE stocks has contributed greatly to boosting indices today, general manager of Daman Financial Services Walid Al Khateeb told Mubasher, adding that the effect of such re-valuation was evident on FGB in particular.
Source:
Mubasher Exclusive
