Dubai bourse claws back

Dubai's index finished higher for the 10th session in 11, reversing early losses as property and bank stocks clawed back the previous day’s losses.

The benchmark rose 1.2 percent to 2,004 points as volumes fell by more than a third from the previous day.

"The slowdown in volumes isn't a negative -- it shows investors aren't panicking," says Shahid Hameed, Global Investment House head of asset management for the Gulf region.

Deyaar and Gulf Navigation both rose 7.6 per cent and Union Properties jumped 8.6 per cent.

This trio are three of the five most traded stocks and all ended at around 1 dirham or below, showing investors are targeting the so-called penny stocks.

Emaar Properties finished flat and Dubai Financial Market rose 2.2 per cent, completing the volume top five. Dubai Islamic Bank climbed 1.1 per cent.

"I don't think the markets have significant downside because they're still trying to catch up other emerging markets," says Jithesh Gopi, head of research at SICO investment bank.

Abu Dhabi's index fell for a second day, slipping 1.3 per cent to 2,789 points, dragged lower by Aabar Investments down 2.3 per cent, and Emirates Telecommunications Corp (Etisalat), down 1.8 per cent.