DUBAI- Saudi Arabia's stock market pulled back on Monday as a bubble in shares of real estate firm Dar Al Arkan 4300.SE burst, while equities in Qatar pulled further away from six-year lows.

The Saudi index .TASI retreated 0.6 percent as Dar Al Arkan, which had gained as much as 3.4 percent in early trade, closed 9.9 percent lower at 12.60 riyals. It was by far the market's most heavily traded stock.

Dar Al Arkan had jumped from around 7.50 riyals in mid-November, when international index compiler MSCI said it was adding the stock to its Saudi Arabia Index. Retail investors piled into the stock in recent days, drawn by its volatility.

But the stock climbed far beyond what many analysts considered fair value, to about 51 times trailing earnings, according to Thomson Reuters data. Three analysts surveyed by Reuters have a median target price of 5.00 riyals for the stock; two rate it a "hold" and one a "sell".

Saudi cement shares stayed strong, however. They have been rising in recent weeks, partly on hopes that the government will spend more heavily on major construction projects next year after three years of austerity. Riyadh is expected to release its 2018 state budget next week.

Jouf Cement 3091.SE jumped 5.9 percent to its highest level since early 2016 in heavy trade.

Qatar's index .QSI shot up in late trade to close 1.2 percent higher, rebounding from the six-year lows it has been languishing at for much of the last month. Qatari Investors Group QIGD.QA , which traded at around 23 riyals in mid-November, surged 3 percent to 33.48 riyals.

In Dubai, the index .DFMGI rose 0.6 percent as real estate firm Emaar Development EMAARDEV.DU , which hit a record closing low of 5.34 dirhams last week, rebounded 2.6 percent to 5.49 dirhams. Its shares were sold in last month's initial public offer at 6.03 dirhams.



HIGHLIGHTS



SAUDI ARABIA



* The index .TASI fell 0.6 percent to 7,100 points.



DUBAI



* The index .DFMGI rose 0.6 percent to 3,414 points.



ABU DHABI



* The index .ADI climbed 1.4 percent to 4,356 points.



QATAR



* The index .QSI gained 1.2 percent to 7,923 points.



EGYPT



* The index .EGX30 edged up 0.1 percent to 14,427 points.



KUWAIT



* The index .KWSE edged down 0.1 percent to 6,156 points.



BAHRAIN



* The index .BAX edged down 0.03 percent to 1,265 points.



OMAN

* The index .MSI fell 0.4 percent to 5,041 points.

(Editing by Susan Fenton) ((andrew.torchia@thomsonreuters.com)(+9715 6681 7277)(Reuters Messaging: andrew.torchia.thomsonreuters.com@reuters.net))