Emirates Telecommunications Corp. (ETISALAT) rallied the most in more than a month on speculation the government will allow foreign investors to buy shares of the largest publicly traded company in the United Arab Emirates.
The shares rose 1.4 percent, the most since June 21, to 9.35 dirhams at the close in Abu Dhabi. Al Khaleej reported Etisalat will soon allow foreigners to invest in the company, citing Group Chief Executive Officer Ahmad Abdulkarim Julfar. The company also known as Etisalat has the heaviest weighting on Abu Dhabi’s gauge, pushing the ADX General Index (ADSMI) up 0.6 percent, the most since June 21, to 2,485.51. Officials at the company weren’t immediately able to comment.
Etisalat is owned 60 percent by state-owned Emirates Investment Co., according to data compiled by Bloomberg. The Abu Dhabi-based company said on June 7 it’s for the federal government to decide on foreign investments after Emarat Alyoum reported a law that governs Etisalat may be amended to allow foreign and institutional investors to hold the shares.
The company’s second-quarter profit rose 17 percent to 1.87 billion dirhams ($508 million), beating analysts’ estimates. Etisalat comprises 29 percent of Abu Dhabi’s index. Six analysts recommend investors buy the shares, while three have a hold rating, according to data compiled by Bloomberg.
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