Abu Dhabi’s shares advanced to the highest level in more than five months, leading a gain in the Persian Gulf, on speculation the United Arab Emirates will be upgraded to emerging market status by MSCI Inc. (MSCI) this week. Emirates Telecommunications Corp., the U.A.E.’s biggest phone company, advanced a tenth day. Abu Dhabi Commercial Bank PJSC (ADCB) climbed 1.6 percent after the bank said it will make a profit of about 1 billion dirhams ($272 million) from the sale of its stake in RHB Capital Bhd. The Abu Dhabi ADX General Index (ADSMI) increased 0.6 percent to 2,777.01, the highest intraday level since Jan. 9, at 11:06 a.m. in the emirate. Dubai’s DFM General Index (DFMGI) gained 0.5 percent and the Bloomberg GCC 200 Index (BGCC200) rose 0.1 percent.
MSCI, which classifies six of the seven Gulf markets as frontier, will decide on whether to raise the U.A.E. to emerging-market status on June 21. Stock exchanges in the country said May 29 that market participants are ready to use an upgraded trading system, the so-called delivery-versus-payment, meeting one of the criteria for an upgrade at MSCI.
“In the coming days, all investors are eyeing the MSCI decision to include the U.A.E.” in the emerging market index, said Samer Darwiche, a financial analyst at Gulfmena Investments in Dubai. “All the positivity in the market is related to that.”
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