Dubai: Dubai index ended almost flat on Tuesday, recovering from sharp losses earlier in the session led by Arabtec following a rebound in Saudi’s Tadawul.

The Dubai Financial Market General Index ended 0.08 per cent lower at 3,720.39, after falling as much as 2.5 per cent or a low of 3,628.07.

“UAE market was weak at one point in time, but after a rebound in Saudi, the UAE indices reversed early losses,” said Sebastien Henin, head of asset management at The National Investor, adding “we had a very good session in Saudi Arabia and even Qatar.”

The Saudi’s Tadawul All Share index extended gains after a smooth transition following the death of King Abdullah on January 23. The index ended 2.43 per cent higher at 8,686.16, after hitting a high of 8,691.22.

In Dubai, Arabtec, which was the second biggest gainer in trade, ended 5.23 per cent higher at Dh3.020 after Abu Dhabi fund Aabar Investments, received regulatory approval to buy a further 100 million shares, according to Arabtec.

Takaful Emarat ended up 5.87 per cent to be at Dh0.974. Union Properties fell after posting lower than expected numbers. The company said its 2014 profit fell 45.6 per cent as revenues more than halved, without giving any reasons.

Union Properties ended 5.83 per cent weaker at Dh1.13.

In Abu Dhabi, the general index ended 0.10 per cent lower at 4,530.20. Abu Dhabi Islamic Bank ended 9.40 per cent lower at Dh5.3.

The stock tumbled its daily 10 per cent limit in the previous session after the lender reported results that were broadly in line with estimates and proposed a nearly flat dividend payout.

Aldar Properties, which was the most active stock in trade in terms of value, ended 0.82 per cent higher at Dh2.46.

Sideways:

“We should trade sideways and we should have pretty good sessions and some profit-taking post that. We need a strong movement on crude oil or geopolitical to make sure that investors go in one direction, otherwise it would be difficult to come out of this range,” added Henin.

Elsewhere in the Gulf, Muscat Securities MSM 30 index ended 0.80 per cent lower at 6,591.730, while Qatar ended 11,920.48, up 0.71 per cent.

Kuwait’s index fell after the country budgeted for a big deficit along with a spending cut. The country’s finance ministry revealed a draft budget for the next fiscal year starting in April, which projects a big deficit and a 17.8 per cent drop in spending from the original plan for the current 2014/15 year.

Kuwait Stock Exchange Index ended 0.66 per cent lower at 6,615.44.