Gulf Finance House (GFH) signed an agreement with Securities & Investment Company (Sico), a Bahrain investment bank, to act as a market maker for its shares, the company said in a bourse filing on Sunday.
GFH released a statement on the Dubai Financial Markets to inform shareholders of the deal after receiving a non-objection from the Central Bank of Bahrain.
The company said: “GFH has entered into this market marking arrangement to acquire treasury shares with an objective to stabilise and support share prices.”
Sanyalak Manibhandu, head of research at NBAD Securities, said that the Islamic investment bank had excess capital.
“I think they want to use some of the excess and at the same time, reward shareholders,” he said.
GFH is aiming to complete the purchase of treasury shares this week.
