UAE’s du shares hit six month high

UAE’s du hits a six-month high after the government changed the royalty fee structure for the telecoms operator.

Du's shares climb 3.6 percent to their their highest level since August 8 2011.  The operator will a pay 15 percent royalty, or tax, on its full-year 2011 net profit, plus a further 5 percent of revenue.

Du had provisioned to pay 50 percent of its annual profit in royalty, the same as usually levied by the government on former monopoly Etisalat.

For 2010, the federal government instructed du to pay a 15 percent royalty fee on its net profit in a surprise decision.

Du's gain helped Dubai’s index climb 1 percent to 1,482 points, a five-month high.

Abu Dhabi-listed Etisalat slipped 0.2 percent, while the UAE capital's benchmark rose 1.1 percent to 2,506 points.