By Stanley Calvalho
Move to reduce limit from 30% follows a more than 50% decline in bank's share price.
Abu Dhabi's First Gulf Bank said on Tuesday it has halved its foreign share ownership limit to 15 percent to curb speculation which it blamed for a sharp decline in its stock price.
"In the last few months, FGB's shares have been irrationally traded in the market, resulting in share price decline by more than 50 percent," FGB Chairman Sheikh Hazza bin Zayed Al-Nahyan said in a statement.
"The decrease in the share price was in majority attributed to short term foreign speculators who took advantage of markets nervousness," he said.
A board meeting agreed on Sunday to cap foreign ownership at 15 percent of the bank's capital, down from 30 percent, the statement said. (Reuters)