UAE benchmarks end higher, with most regional markets upbeat as gains in global stocks boost sentiment, but Qatar falls to a 10-week low, weighed by growing pessimism about the prospects of an MSCI index upgrade.
Dubai's index rises 0.9 percent to 1,574 points, its fourth gain in five sessions.
Volumes are focused in property and construction stocks. Emaar Properties climbs 1.6 percent and Arabtec gains 0.7 percent.
Abu Dhabi's index rises 1 percent to 2,666 points, a three-week high.
The euro traded at a three-week high versus the dollar on Wednesday and US stocks rallied overnight, buoyed by hopes for a fresh bailout package for debt-laden Greece.
“We're positive across the region because globally stocks did well yesterday - with the exception of Qatar on MSCI uncertainty," says Shahid Hameed, Global Investment House head of asset management for the Gulf region.
Investors are increasing doubting Qatar will be included in MCSI's emerging market index after the Doha exchange said on Monday it would not be lifting foreign ownership limits this year.
Doha's benchmark slips 0.6 percent to 8,327 points, to its lowest close since March 24.
Losers outnumber gainers 15 to four. Volumes in Vodafone Qatar hit a month-high, but the stock falls 1.3 percent after Nomura cut its share-price target for the telco.
Bank Muscat extends gains since a US bank upgraded its rating for the stock to 'buy'.
Bank Muscat's shares rises 4.6 percent to 0.754 rials, its largest gain since April 3.
Loan growth at Oman's top lender by value will likely gain momentum this year, driven by a pick-up in corporate credit activity, Bank of America Merrill Lynch wrote, upping its price target to 0.96 rials.
Oman's index rises for a third day since Sunday's 22-month low, climbing 1.1 percent to 6,075 points.
Bluechip Renaissance Services jumps 4 percent, trimming its 2011 losses to 21 percent.
Qatar's index slips on increasing doubts the country will be included in MCSI's emerging market index after the Doha exchange said on Monday it would not be lifting foreign ownership limits this year.
"This decision will have a negative effect on the market," says Hani Girgis, assistant chief dealer at Dlala brokerage.
"We don't think Qatar can be included in the MSCI (without a cap increase in foreign ownership limit)."
The benchmark slips 0.4 percent to 8,346 points, down in five of past seven sessions.
Losers outnumber gainers 15 to two.
Vodafone Qatar falls 0.6 percent to 7.84 riyals after research firm Nomura cut its share-price target to 9.50 riyals from 9.52 riyals, citing the telecom operator's inability to achieve its financial guidance.
Elsewhere, Saudi Arabia's index rises for a sixth session in seven, climbing 0.3 percent to 6,759 points.
Petrochemical and banking, the top sectors by value, gain. Saudi Kayan Petrochemicals adds 0.3 percent and Alinma Development Bank rises 1.5 percent.