Shares in du climb after government cuts royalty fees

Market Update: The UAE's second telecoms operator, du, jumped to its highest in more than a year after royalty fees it pays to the government set lower than expected - with video.

UAE telecoms company, du, climbed to its highest in more than a year after royalty fees it pays to the government were set at a lower than expected to 15 per cent.

Shares in du rose 2.8 per cent to Dh3.30 after it released a statement. Etisalat, the country's biggest company by market capitalisation, also gained on the news as it could also benefit from a cut in its royalty fees. It rose 1.35 per cent to Dh11.25.

Both firms, who have a monopoly on the UAE’s mobile market, had set side 50 per cent of their net profit as royalty fee to the government in 2009.

Abu Dhabi Islamic Bank extended a gain in its share price as it posted a better than expected fourth quarter profit of Dh114.1 million, compared to a Dh623.3 million loss in the same quarter last year as it booked less provisions.

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The emirate's largest Islamic lender added 2.25 per cent to Dh3.18 in early trading.

But investors remained on standby in anticipation of the re-opening of the Cairo stock exchange, which has been delayed for a third week.

Bahrain's stock exchange is closed for an Islamic holiday.