Dubai’s stock index rebounded into positive territory on Tuesday as investors bought beaten-down property-related stocks, after the market earlier plunged as much as 5.4 percent.
The index recovered to stand 1.1 percent higher at 3,987 points, bouncing back above the 200-day average at 3,866 points, which is seen as an important technical indicator.
Blue chip Emaar Properties jumped 7.3 percent while construction firm Arabtec, which earlier fell its 10 percent daily limit, was up 8.8 percent.
Dubai’s rebound was triggered in part by a recovery in Qatar, where investors also came in to buy earlier in the morning on the grounds that some valuations had dropped to attractive levels.
However, uncertainty over Arabtec’s business strategy and relationship with major shareholder Aabar remains, while the Dubai market’s descent in the past month has been so fast that many investors may have been unable to get out of stocks. So fund managers say it is not clear that any extended rebound of the market is beginning.
Originally published on http://www.arabianbusiness.com