Dubai stocks posted their biggest weekly gain since December as investors judged prices were attractive following first-quarter declines.
The DFM General Index climbed 2.4 percent to 3,614.70 at the close in the emirate, taking the advance this week to 6.1 percent, the most since Dec. 25. The gauge lost 7 percent in the first quarter.
“The U.A.E. entered oversold levels toward the second half of March and stocks became cheap,” Ramez Merhi, the director of asset management at Al Masah Capital, said by e-mail from Dubai today. It was “mostly foreigners buying and it also helps that Brent crude had a strong move yesterday,” he said.
Dubai’s benchmark stock gauge trades at 10.5 times 12-month estimated earnings, compared with a multiple of 12.1 for the MSCI Emerging Markets Index. The 14-day relative-strength index on the emirate’s measure fell to 21 in March, below the 30 level that signals to some technical analysts a security is poised for a rebound. The index has since climbed to 52.
Brent crude slipped 3.2 percent on Thursday after rallying 3.6 percent the previous day, when most of the gain occurred after the Dubai market closed. The U.A.E. was OPEC’s fifth-biggest oil producer in March, according to data compiled by Bloomberg.
Emaar Properties PJSC, the developer of the world’s tallest skyscraper, rose 6.3 percent, the most in two months, while construction company Arabtec Holding Co. added 5.2 percent, its biggest move since Jan. 7. Damac Properties Dubai Co. climbed to the highest since March 12.