DUBAI - Dubai's stock market snapped a nine-day losing streak on Sunday that was triggered by Turkey's economic crisis, but trade was thinned drastically by the onset of Eid al-Adha holidays in the region. Egypt's bourse remained soft.
The Dubai index, which had dropped 5.9 percent over the previous nine trading days, rebounded by 0.4 percent in one of the lowest daily volumes this year.
Emirates NBD, which had plunged nearly 16 percent because it is in the process of acquiring Turkey's Denizbank for $3.2 billion, climbed 2.3 percent. Overall, 17 Dubai stocks rose and nine fell.
Abu Dhabi's index fell 0.5 percent in thin trade. In contrast to most of the Gulf, the Abu Dhabi market has largely moved sideways since Turkey's financial crisis erupted, partly because lenders such as First Abu Dhabi Bank, which lost 0.7 percent on Sunday, have relatively little exposure to Turkey.
Many fund managers think Gulf bouses may ride out the Turkey crisis more comfortably than most emerging markets because of their currency pegs to the U.S. dollar and this year's strength of oil prices, which has left most economies in the region with current account surpluses.
Dubai's Al Mal Capital said in a note, however, that even though Turkey was having a minimal fundamental impact on the Gulf, it had raised its allocations to cash to 10 percent because of the global uncertainty.
"We believe investors should eventually start to differentiate between our markets and other emerging markets given their low long-term correlation..." said Vrajesh Bhandari, portfolio manager at Al Mal. "We plan to redeploy this cash in our core names once there is some stability in the market."
In Egypt, the index edged down 0.2 percent in its smallest trading volume for several years. Egyptian Iron & Steel tumbled 8.1 percent to a five-week closing low.
Most other major Middle Eastern stock markets were shut for the Eid holidays.
(Reporting by Andrew Torchia Editing by Mark Heinrich) ((firstname.lastname@example.org; +9715 6681 7277; Reuters Messaging: email@example.com))