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Merged U.A.E. Banking Giant Seen Earning Bigger MSCI Weighting

  • EFG-Hermes sees National Bank of Abu Dhabi drawing inflows
  • First Gulf Bank shares trade for last time on Thursday

A mega-merger of the two biggest banks in the United Arab Emirates should leave the combined company with a larger representation on the benchmark emerging-market index, triggering hundreds of millions of dollars of inflows to the stock, according to calculations by EFG-Hermes strategists.

Thursday marks the last day of trading in First Gulf Bank PJSC before its combination with National Bank of Abu Dhabi PJSC in a deal that creates the biggest financial institution in the country. The combined entity starts trading on April 2, with FGB stock holders receiving 1.254 shares for each one they own before the merger.