Union Properties rose 6.1 percent after reporting a 66-percent rise in first-quarter profit. The developer also received shareholder's approval to extend its debt maturities. The Dubai index rose 0.7 percent to 1,737 points.
"UPP results were above expectations. Of course, the company needs to restructure debt but they are looking good now. If they manage to sell Ritz Carlton that could create additional liquidity," said Haissam Arabi, chief executive and fund manager at Gulfmena Alternative Investments.
UAE markets were also helped by optimism of a resolution to Dubai World's restructuring plan after the head of HSBC's Middle East operations said the plan is "very fair" and a deal could be signed in coming weeks.
However, analysts say trading will continue to be muted amid little participation from institutional investors in the absence of a restructuring deal.
"HSBC's announcement is a positive move but we are waiting for more clarity. Materialization is taking a lot of time and that is worrying," said Vyas Jayabhanu, head of investments at Al-Dhafra Financial Broker.
Saudi Arabia's benchmark fell for the second straight day but analysts remain optimistic about the long-term prospects of the kingdom's markets. The Tadawul All-Share Index (TASI) declined 0.23 percent to 6,891.72 points.
Saudi Industrial Development dropped 2.1 percent and Etihad Etisalat (Mobily) fell 1.9 percent.
"It's a natural profit taking wave. Market was overextended and the profit taking was necessary and healthy," said Arabi.
The sector activity for the day remained predominantly negative with losses ranging from 0.02 percent by the Petrochemical Industries sector to 1.38 percent by the Telecommunication & Information Technology sector. The gaining sectors on the other hand ranged from 0.19 percent by the Hotel & Tourism sector to 1.36 percent by the Real Estate Development sector. The overall market breadth for the day was negative with 43 advancers against 70 decliners giving it an AD ratio of 0.61, the Financial Transaction House (FTH) said.
Abu Dhabi's index rose for the first session in six, helped by Abu Dhabi Commercial Bank (ADCB) which rose 8 percent. The Abu Dhabi measure rose 0.8 percent to 2,795 points.
The board of investment bank Shuaa Capital ratified a 240 million-dirham loan with ADCB to settle obligations against guarantee of a 200 million dirhams availed by Gulfinvest International, Shuaa said in a statement.
Earlier in the day, Shuaa swung to a net profit in the first quarter, helped by its asset management business and lower expenses.
Agility fell 3.1 percent in Kuwait. The index fell for a first session in five as institutional investors stayed away.
"There is no support from institutions. The market looks like it is on a trading halt," says a Kuwait trader who asked not to be identified.
The Kuwaiti index fell 0.6 percent to 7,266 points.
Small-caps helped Qatar's index close higheer, but volumes remained low. The Qatari index rose 0.2 percent to 7,528 points.
The Omani index rose 0.03 percent to 6,852 points.
- With input from agencies
