Arabtec stocks snapped a seven-day winning streak after doubts grew over a sustained rise in the construction company's share price.
The company's shares fell 3.3 per cent in early trading, the biggest decline since December.
Analysts have raised doubts over Arabtec's recent rally, which has pushed the stock up 66.6 per cent since the start of the year. Many investors have expressed concern that there have been no announcements to justify the recent rally.
In a research note to clients, Morgan Stanley said the current price implied an increase of Arabtec's order book of Dh10 billion since the third quarter of last year.
Arabtec led the Dubai market downwards, with the Dubai Financial Market General Index fell 0.5 per cent to 1,465.54, while the Abu Dhabi Securities Exchange General Index was flat at 2,466.91.
On the capital's exchange, Abu Dhabi Commercial Bank, Dana Gas and Aldar Properties fell, while Etisalat and Sorouh rose.
Asian markets rose on optimism that the eurozone sovereign debt crisis was easing, with the Nikkei 225 gaining 1.1 per cent to 9,015.59 and the Hang Seng Index climbing 1.1 per cent at 20,947.73.
Oil prices continued to advance, with Brent crude futures rising 73 cents to $118.45 per barrel, the benchmark's fifth consecutive day of gains.
