Dubai Stocks Gain Most in 3 Weeks on Speculation Drop Overdone

* username: rupertbu

Dubai’s index gained the most in more than three weeks, leading Gulf markets higher, on investor speculation that declines this month are overdone given growth prospects.

Emaar Properties PJSC, the United Emirates’ biggest developer, added the most since Jan. 3. The Dubai Financial Market, the only Gulf Arab stock market to sell shares to the public, gained the most in more than a month. The DFM General Index rose 2.8 percent, the most since Jan. 3, to 1,614.3. The measure closed at the lowest since Dec. 9 yesterday.

Declines of 10 percent this month have left the 32 companies in Dubai’s benchmark index valued at about 5.1 times estimated earnings, data compiled by Bloomberg show. That compares with 12.9 times for the MSCI Emerging Markets Index. Dubai’s 14-day relative strength index closed yesterday at 29. A reading below 30 indicates a security is poised to gain, according to some technical analysts.