Dubai's main index briefly rose on Thursday above 2,900 points, an area of major technical resistance established in late October and early November, but then came off its highs to close at 2,891 points, up just 0.1 per cent.
Many of the stocks that had lifted the index 1.1 per cent on Wednesday closed in the red. Developer Emaar was down 0.3 per cent, telecommunications operator du dropped 1.3 per cent and Mashreq bank lost 7.8 per cent.
In the short term, further gains in Dubai may well depend on whether the emirate is successful in its bid to host the Expo 2020 world fair. The winning city will be announced on Nov. 27 and until then the market may be volatile.
EGYPT
Egypt's main stock index ended a week-long rally on Thursday, falling 0.6 per cent after a suicide car bombing killed at least 10 soldiers in the Sinai Peninsula and four policemen were wounded by a hand grenade at a checkpoint near Cairo.
Egyptian stocks have been on the rise since the ouster of former president Mohammed Mursi in July, driven largely by local retail investors who support the new army-backed government - but are wary of any escalation of violence.
"Yesterday was a dramatic day and the country has entered a period of mourning," said Cairo-based independent financial analyst Osama Mourad.
Before the attacks, the index was rallying on hopes for fresh financial aid from the Gulf states and against a backdrop of increasing stability and security - a perception which, at least temporarily, was dented on Wednesday.
The Egyptian index also faced resistance after closing near the psychologically important level of 6,500 points in the previous session, Mourad added.
Qatar's bourse slipped 0.5 per cent as it continued to consolidate after a strong rally, while Saudi Arabia's index, which had entered a profit-taking period one day before Qatar, edged up 0.01 per cent.
Bahrain's index climbed 0.7 per cent as Ahli United Bank recovered, after dropping 2.2 per cent in the previous session following announcements of share sales by "key persons" - a legal term for board members and top executives.
THURSDAY'S HIGHLIGHTS
EGYPT: The index fell 0.6 per cent to 6,457 points.
QATAR: The index fell 0.5 per cent to 10,283 points.
SAUDI ARABIA: The index edged up 0.01 per cent to 8,338 points.
DUBAI: The index gained 0.1 per cent to 2,891 points.
ABU DHABI: The index slipped 0.2 per cent to 3,832 points.
BAHRAIN: The index rose 0.7 per cent to 1,202 points.
OMAN: The index fell 0.1 per cent to 6,772 points.
KUWAIT: The index slid 0.5 per cent to 7,841 points.