Dubai and Abu Dhabi's bourses both tumbled more than 3 per cent to 28-month lows on Wednesday, wiping out the previous day's rebound as investors cashed out on renewed worries over low oil prices and a global equity market rout.

Dubai's index plunged 4.6 per cent, closing at 2,639 points.

The two most traded stocks on the bourse were contractors Arabtec and Drake & Scull, declining 7.7 and 9.5 per cent respectively.

Abu Dhabi's bourse slumped 3.1 per cent to 3,768 points, taking its 2016 losses to 12.5 per cent. Three-quarters of traded stocks traded fell than 4 per cent.

Small and mid-cap stocks were battered as local investors scurried to dump shares indiscriminately. Dana Gas, Abu Dhabi's most traded stock, plummeted 9.5 per cent.

"The stock markets are fickle and vulnerable to sways in oil prices," said an Abu Dhabi-based trader. "Tuesday's rebound lost its bounce because we are back to the same macroeconomic worries which have plagued equity markets from the start of the year."

Crude futures slumped again in Asian trade on Wednesday, with US oil dropping more than 3 per cent towards $27 a barrel and its lowest since 2003, while European shares slid to their lowest since October 2014. – Reuters