Shares in Etisalat had their busiest day of trading since early 2014 yesterday, as domestic investors piled into the stock in the run-up to the company's opening to foreign investors.
About 13.8 million shares in the telecoms operator changed hands on the Abu Dhabi Securities Exchange, more than the seven previous days of trading combined, and the busiest day of trading since February 2014.
“It is much the same story as yesterday [Tuesday] following Monday’s announcement, with local investors piling in before the shares become available to foreign investors,” said Julian Bruce, the head of institutional trading at EFG-Hermes in Dubai.
Etisalat’s shares surged by 14.9 per cent in the first half-hour of trading, before gradually coming down as more shares were offered for sale. They ended up 5 per cent at Dh14.50, having soared 15 per cent on Tuesday.
“Once we get guidance on the dates of the actual opening we may some see some additional interest in the stock,” Mr Bruce said. Etisalat said on Tuesday that the lifting of the restrictions on its shares was subject to “legal and legislative procedures” that had yet to be finalised.
The ADX General Index rose by 1.3 per cent to a new high for the year of 4,821.52, buoyed by Eshraq Properties, Aldar Properties, and FGB.
The Dubai Financial Market General Index ended up 0.47 per cent at 4,168.48.
Etisalat's Dubai-based rival du ended the day down 0.7 per cent, after surging 4.58 per cent on Tuesday on speculation that its own restrictions on foreign shareholdings may also be eased.
jeverington@thenational.ae
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