The builder gave back some of these gains to end 2.3 percent higher at 2.71 dirhams amid uncertainty over how the cancellation of a $1.7 billion deal with Abu Dhabi's Aabar Investments would affect Arabtec's chances of winning contracts in the UAE capital.
"It's very positive for Arabtec shareholders as it removes the prospect of a massive share dilution," said Zahed Chowdhury of Al-Mal Capital. "Some of this was already priced in as people increasingly questioned the economics of the deal."
In January, Abu Dhabi government-controlled Aabar agreed to buy a 70 stake in builder Arabtec, paying 2.30 dirhams a share through convertible bonds.
Analysts said Arabtec no longer needed the deal following Dubai's March debt repayment offer, which includes paying contractors money owed. Aabar, a major shareholder in Daimler ended flat.
"We're not so sure this would have been a good deal for Aabar - it would have effectively been buying Dubai receivables and even if these came at a discount there was very little economic grounding in the transaction," said Chowdhury.
"We saw it as a bailout rather than a buyout, so both companies' shareholders should be happy the deal is off."
Other Dubai stocks were muted, with Arabtec accounting for nearly half of all shares changing hands on the index, which edged up 0.1 percent. The Dubai index rose 0.1 percent to 1,824 points.
"We expect the UAE markets to wait on real estate and banking sector earnings over the coming weeks before finding direction," added Chowdhury.
"We remain unexcited about Q1 results - real estate because of a lack of land sales and deliveries, banks because of a peaking NPL (non-performing loan) cycle and limited volume growth."
In Saudi Arabia, the Tadawul All-Share Index (TASI) edged up 0.1 percent 6,891 points. The sector activity for the day was mixed with 7 gaining against 8 losing sectors with gaining sectors ranging from 0.13 percent by the Retail sector to 0.83 percent by the Insurance sector. The losing sectors on the other hand ranged from 0.10 percent by the Agriculture & Food Industries Sector to 0.72 percent by the Hotel & Tourism sector. The overall market breadth for the day remained negative with 42 advancers against 76 decliners giving it an AD ratio of 0.55, the Jeddah-based Financial Transaction House (FTH) said in its daily market commentary.
Industries Qatar fell 1.9 percent, easing from Tuesday's 29 week high after its first-quarter profit dropped, weighing on Doha's index, which made its largest decline for seven weeks, losing 1.1 percent. The Qatari index dropped 1.1 percent to 7,718 points.
Egypt's index rose 2.2 percent to a 19-month high on renewed speculation Orascom Telecom (OT) would sell its Algerian unit. OT climbed 4 percent.
Talaat Moustafa Group, Egypt's largest listed developer, rose 1.6 percent after saying it sold $218 million of property units in the first quarter.
Kuwait's index fell 1.2 percent to 7,400 points, its biggest drop since Jan. 27 as banks declined. Zain dropped 4.5 percent to a five-week low.
"There is some nervousness about Q1 results and with Kuwait companies generally reporting later than most, regional investors will pull out money and invest where the action is," said Shakeel Sarwar, Sico investment bank head of asset management.
- With input from agencies
