Dubai Stocks Return to Bull Market After Valuations Plunge
- DFM General Index rebounds 21% after Gulf markets' oil selloff
- Trading volume double 6-month average; 14-day RSI rises to 65
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Dubai stocks entered a bull market as the lowest valuations in four years lured investors following a selloff across the Gulf region.
The DFM General Index rose 2.5 percent to 3,170.27 on Monday, bringing its gain since a Jan. 21 low above the 20 percent threshold for a bull market. Companies on the gauge traded at an average of 8.7 times their estimated earnings over the next 12 months, compared with 10.9 for the MSCI Emerging Markets Index, according to data compiled by Bloomberg. They traded at 7.2 times expected earnings on Jan. 21, the lowest in four years.