DUBAI: UAE's markets slipped on Monday from the previous session's Fed-spurred multi-month highs as investor caution returned while other Gulf bourses were mixed.
Local markets rallied on Sunday after the U.S. Federal Reserve launched a fresh round of money printing that helped lift asset prices worldwide, but that has largely failed to translate into a second day of regional gains.
Dubai's index slipped 0.4 percent, easing away from Sunday's four-month high. Yet its technical indicators remain strong despite Monday's dip, said Bruce Powers, head of research and analysis at Trust Securities.
"The Dubai index triggered a continuation of a 15-week uptrend this week, with it now heading towards resistance around 1,638, followed by the 1,706 price area," said Powers. "Support levels are around 1,573 and 1,554 points."
The emirate's heavy-traded stocks were the main drag. Bellwether Emaar Properties shed 0.6 percent, while Dubai Financial Market and Islamic mortgage lender Tamweel each declined 2.9 percent.
Abu Dhabi's index slipped 0.1 percent, halting an eight-session winning streak.
"Investors don't want to leave money on the table for long - only good Q3 earnings will once again propel equities," said a Dubai-based trader who asked not to be identified.
Saudi Arabia's benchmark slipped 0.09 percent as investors shifted their focus away from global events and toward local quarterly earnings.
The benchmark hit a four-month high on Saturday, tracking buoyant global markets, but many investors are now hesitant.
"There may be short-term profit-taking but our long-term views are strong," said Farooq Waheed senior portfolio manager at Riyad Capital.
"Q3 earnings will be positive for sectors that rely on generating revenues from within Saudi, like banks, retail and telecoms."
Bank stocks dropped with the sector's index closing 0.3 percent lower.
Petrochemical stocks were also lower, with Saudi Basic Industries Corp (SABIC) - the world's largest chemicals producer - down 0.3 percent.
Many investors are underweight in the petrochemical sector over global demand concerns.
"There has been some restocking in inventories but going forward, the risks are high. We don't see global growth bouncing back strongly," Waheed said.
Alinma Bank was the most active stock, dropping 0.4 percent. Dar Al Arkan was the second most traded stock but closed flat.
In Doha, the index climbed 0.2 percent to its highest close since May 8.
Qatar Telecom was the main support, rising 1.6 percent. Commercial Bank of Qatar gained 1.3 percent and heavyweight Qatar National Bank added 0.2 percent.
Qatar has underperformed most regional markets, with the index down 1.9 percent year-to-date, although investor interest has returned in recent weeks as they target under-valued stocks.
Elsewhere, Kuwait's index finished 0.3 percent higher. Bargain hunters returned in late-trade, lifting the market from Sunday's three-week low.