DUBAI, July 21 (Reuters) - Gulf stock markets were flat to slightly softer in early trade on Thursday as blue chip Emaar Properties EMAR.DU , which had been rallying strongly for the past two weeks, lost steam in Dubai.

Emaar edged down 0.1 percent to 7.00 dirhams, failing to break technical resistance on its October 2015 peak of 7.01 dirhams. A break would trigger a reverse head & shoulders pattern formed by the highs and lows since last August and pointing up in the long term to at least the April 2015 peak of 8.39 dirhams.

Dubai's stock index .DFMGI was flat. Second-tier real estate firm Deyaar Development DEYR.DU dropped 0.7 percent after reporting a 17.8 percent fall in second-quarter net profit, though a few small, speculative stocks such as Al Salam Group Holding SAGH.DU rose sharply.

Al Salam soared its 15 percent daily limit in Dubai. In Kuwait, where its shares SAGH.KW surged 5.8 percent, it issued a statement saying it knew of no material reason for the unusual trade in its shares.

Saudi Arabia's index .TASI was flat as Yanbu National Petrochemical Co 2290.SE (Yansab) jumped 4.4 percent in unusually heavy trade after its second-quarter net profit trebled to 689.3 million riyals ($183.8 million) because of higher production and sales; analysts had on average forecast 446.2 million riyals. ID:nD5N19Q01Q

But Yamama Cement 3020.SE tumbled 5.5 percent after reporting a 14 percent year-on-year drop in second-quarter profit to 150.5 million riyals, and slashing its second-quarter dividend to 0.25 riyal per share from 0.75 riyal.

Abu Dhabi's index .ADI edged down 0.2 percent while Qatar .QSI fell 0.5 percent with blue chip Industries Qatar IQCD.QA , which had risen strongly earlier this week, pulling back 0.9 percent.

(Reporting by Andrew Torchia; Editing by Andrew Heavens) ((andrew.torchia@thomsonreuters.com)(+9715 6681 7277)(Reuters Messaging: andrew.torchia.thomsonreuters.com@reuters.net))