Dubai’s benchmark stock index led Persian Gulf markets higher and headed for the biggest increase in almost two weeks on bets a decline the past month was overdone based on prospects for earnings and economic growth. Emaar Properties PJSC (EMAAR), builder of the world’s tallest skyscraper, advanced 1 percent and Arabtec Holding Co. (ARTC), the United Arab Emirates construction company, jumped the most this month. The DFM General Index (DFMGI) rose 0.3 percent, the most since June 9, to 1,556.38 at 10:54 a.m. in Dubai. The measure is headed for the biggest gain since June 1. Excluding today, it has lost 2.8 percent the past month. The Bloomberg GCC 200 Index (BGCC200) of the region’s stocks increased less than 0.1 percent.
“Markets were oversold during the last month, so some investors may now be positioning in preparation for second- quarter results,” said Samer Darwiche, financial analyst at Gulfmena Investments in Dubai. “It looks like summer has started in most markets with the low volumes we are seeing.”
A decline of 4.6 percent this year has left the 30 companies in Dubai’s benchmark index valued at about 8.9 times estimated earnings, data compiled by Bloomberg show. That compares with 10.9 times for the MSCI Emerging Markets Index.
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