Monday, Jul 30, 2012
DUBAI (Zawya Dow Jones)--Increasing the level of foreign ownership in Emirates Telecommunications Corp. (ETISALAT.AD), or Etisalat, will assist corporate governance as well as improve liquidity and the value of its shares, the telco's chief executive said on Monday.
"Etisalat currently represents one third of the market cap of ADX [Abu Dhabi Stock Exchange], we also think this change will additionally improve the liquidity in the market," Ahmad Abdulkarim Julfar told Zawya Dow Jones in an email. "Government authorities have the final say on foreign ownership."
Etisalat shares rose sharply Sunday on hopes that a ban on foreign ownership of its stock may soon be lifted. They ended 0.1% higher at AED9.37 Monday.
In remarks published in the local Al-Khaleej newspaper on Sunday, Mr. Julfar said Emirates Investment Council is currently working on amending the law to allow foreign ownership of its shares.
Analysts have long cited a change in foreign ownership levels as a potential catalyst for Etisalat shares. The opening up of leading U.A.E. stocks like Etisalat to foreigners would also help improve the country's chances of clinching a much sought after upgrade to emerging market classification by index compiler MSCI Inc.
-By Shereen El Gazzar, Dow Jones Newswires; +971 444 61684; Shereen.elgazzar@dowjones.com; Twitter: @ZDJnews
Copyright (c) 2012 Dow Jones & Co.
(END) Dow Jones Newswires
30-07-12 1236GMT
