The Dubai Financial Market General Index took equity investors on a roller-coaster ride yesterday as the market caught up with Friday's global market rally.
Stocks pared their gains in the second half of the trading session amid worries that euro-zone officials would not announce any new stimulus measures at tomorrow's European Central Bank (ECB) meeting.
"By the end of this week, it would be clear whether the global market rally was a mirage and markets will go down soon after, or that the trigger was just enough to be the start of a risk-on trade," said Haissam Arabi, the chief executive at Gulfmena Investments in Dubai.
The Dubai index rose as much as 1 per cent in mid-morning trading, its biggest intraday gain since July 18, to 1,524.11, tracking global market performance on Friday after the ECB chief Mario Draghi said the bank was "ready to do whatever it takes to preserve the euro". A few hours later, local stocks changed direction, with the benchmark closing 0.05 per cent lower to 1,509.05.
Emaar Properties slipped 0.3 per cent to Dh3.24. After the trading session, the company reported a net operating profit of Dh614 million, a rise of 45 per cent over last year.
Etisalat gained 1.2 per cent to Dh8.77 on the Abu Dhabi Securities Exchange General Index amid continued reports the telecommunications operator may open up its shares to foreign investors. First Gulf Bank rose 1.2 per cent to Dh8.77. The Abu Dhabi index added 0.6 per cent to 2,485.51.
Elsewhere in the region, Kuwait's measure added 0.03 per cent to 5,748.78 points. Bahrain slipped 0.3 per cent to 1,109.78.
Oman fell 0.2 per cent to 5,376.57 and Qatar added 0.7 per cent to 8,285.96.
The Saudi Tadawul All-Share Index was little changed at 6,769.12 .