Wednesday 6 March 2019

#AbuDhabi Mega-Lenders May Bring More Pain to 3 #Dubai Stocks - Bloomberg

Abu Dhabi Mega-Lenders May Bring More Pain to 3 Dubai Stocks - Bloomberg:

Banks based in Abu Dhabi are expected to put more pressure on stocks that have already taken a beating in neighboring Dubai.

A merger between Abu Dhabi Commercial Bank PJSC and Union National Bank PJSC on May 1 could draw around $193 million from investors who track benchmarks compiled by MSCI Inc. and FTSE Russell, according to Mohamad Al Hajj, an equities strategist at EFG-Hermes Holding.

The combined entity will later acquire a privately-held bank, creating a lender with around $114 billion in assets, and could trigger the ouster of three stocks in Dubai from MSCI’s benchmarks, he wrote in a report.

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