After a sharp setback last week, stock markets in the United Arab Emirates have resumed rising in high trading volumes, but some analysts say the rally remains fragile as much of it is speculative and depends on a benign global backdrop.
Dubai's benchmark index, up about 25 percent so far this year, bounced off an eight-year low in mid-January. While many fund managers believe the market is in an overdue recovery from an excessive drop, sharp gains in small-capital stocks with limited fundamental attraction have raised doubts about the sustainability of the uptrend.
Construction company Arabtec is trading at 24 times this year's estimated earnings, compared to historic levels around 10 times, analysts said. The stock is up 89 percent so far this year, far outperforming the benchmark.
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