DUBAI, Aug 16 (Reuters) - Gulf stock markets mostly moved sideways in quiet trade early on Wednesday although two major stocks in Dubai, GFH Financial and Union Properties, rebounded modestly after sharp losses on the previous day.

The Dubai index was flat as GFH, the most active stock, rose 4.0 percent. It had plunged 12.9 percent over the previous two days as it acquired a $1.2 billion infrastructure portfolio in Africa and the Middle East, funding it with a $315 million capital increase that took issued and paid-up capital to $975 million - a big dilution for minority shareholders.

Union Properties edged up 0.5 percent after sinking 4.3 percent on Tuesday, when it reported a 2.29 billion dirham ($624 million) net loss for the second quarter because of big provisions to cover past accounting errors.

Abu Dhabi's index gained 0.3 percent on the back of a 3.4 percent surge by Dana Gas after it reported a 71 percent leap in quarterly profit. However, much of the profit rise was due to an 84 percent plunge in capital spending during the first half as the firm said it balanced spending with available sources of cash.

In Saudi Arabia, the index edged down 0.1 percent. The vast majority of the 10 most active stocks were smaller shares such as Amana Insurance , up 4.7 percent.

Qatar's index fell 0.5 percent as Investment Holding Group , which had tumbled 13 percent from its initial public offer price in the past two days after listing on Monday, lost a further 2.1 percent. It was the second most heavily traded stock.

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