Dubai Shares Advance on Air Arabia Upgrade, Global Stocks Rally - Bloomberg.com

Dubai stocks rose a second time this week as HSBC Holdings Plc raised Air Arabia PJSC to “overweight” and global stocks gained after a Spanish bond sale eased concern the government will struggle to finance its deficit.

Air Arabia, the United Arab Emirates’ biggest low-cost carrier, climbed the most in two weeks. Emaar Properties PJSC, the developer of the world’s tallest skyscraper, increased 1 percent to 3.04 dirhams. The DFM General Index rose 0.8 percent to 1,500.25, paring the drop for the week to 0.9 percent.

In the absence of bigger catalysts, “any positive news that investors catch on to, such as the upgrade of a stock, they will trade off of, but not with too much conviction,” said Saud Masud, a Dubai-based analyst at UBS AG. “From a U.A.E. market perspective you need the global market to recover.”