FAB shares surge further after hike in foreign ownership limit

FAB shares surge further after hike in foreign ownership limit:

Shares of First Abu Dhabi Bank (FAB) continue to witness an insatiable demand as traders resorted to buy regardless of the pricier entry levels. The fresh bout of buying has come about after the bank said it had received regulatory nods from the central bank and the market regulator to hike foreign ownership limit to 40 per cent.

“FAB looks a bit pricey especially compared to peers, so it doesn’t look like the best option,” said Issam Kassabieh, senior financial analyst at Menacorp. “But it is safe because the value is there and because of the MSCI advantage. Dubai Islamic Bank is also appealing.”

On Thursday, FAB shares closed 1.51 per cent higher at the day’s high of Dh16.16. FAB has gained 37.10 per cent in the past year, outperforming the wider ADX index, which gained 18.71 per cent in the same period. Analysts expect shares to surge to Dh18.