Dubai Shares Rise on Optimism Drop May Be Overdone on Earnings

* username: rupertbu

Dubai’s benchmark index advanced the most in almost two weeks as investors bet corporate earnings will beat estimates.

Air Arabia rose the most in more than four months after the Middle East’s largest low-cost airline was raised to “overweight” at HSBC Holdings Plc. Emaar Properties PJSC, the developer of the world’s tallest skyscraper in Dubai, advanced to the highest level in a week. The DFM General Index gained 1.4 percent, the most since April 11, to 1,754.96. The gauge lost 3.4 percent this week.

Dubai’s measure has declined 4.8 percent since the end of March, giving the 32 listed companies price-earnings multiples of 6.11 times, according to data compiled by Bloomberg. That compares with a price-earnings ratio of 12.75 for the MSCI Emerging Markets Index.