Gulf stock markets stay volatile

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Trading on major Arab stock markets in the Gulf has remained volatile, with many of the indices falling sharply after two days of big gains.

Shares dropped by 7% in Saudi Arabia and by 6% in Dubai. Kuwaiti shares were also lower.

The latest falls wiped out much of Tuesday's gains, which came after the UAE said it was making another $19bn available to local banks.

It also guaranteed bank deposits and savings, as well as interbank lending.

Saudi Arabia's Tadawul index had regained more than $55bn of its capital value in the last two days, standing at about $360bn, but it is still more than 42% down from last year.

The Dubai Financial Market had surged more than 22% over the past two days.

Correspondents say the rapid movements show how fragile investor confidence remains, despite rescue plans adopted internationally in countries most affected by the recent financial turmoil.

Regional financial authorities have cut interest rates, eased lending restrictions and pledged tens of billions of dollars of liquidity to domestic banks.