DUBAI: Momentum driving markets in the UAE was tempered after the regulator approved changes to margin lending rules and said it would crackdown on unlicensed lending, while most other regional bourses scaled higher.

Dubai’s index slipped 0.2 percent, easing off Thursday’s five-year high.

The market gave back early-session gains as brokers told clients to sell shares so margin limits would fall within the amended regulations.

Although changes to the lending rules aim to improve trading volumes going forward, the likelihood of penalties for not complying with the set limits sent some brokers scrambling to lower margin levels.

Most of the trading on Dubai’s bourse was on margin, which is now being cut back, traders said.

Abu Dhabi’s index rose 0.6 percent, in its fifth consecutive gain, to a new five-year high.

Banks supported, with Abu Dhabi Commercial Bank up 3.5 percent and Union National Bank 3.9 percent higher. Analysts expect Abu Dhabi lenders to announce strong dividends in the coming weeks.

In Qatar, the measure advanced 1.1 percent in its second sharp advance as investors position for dividends.

Regional investors favor Qatari stocks in dividend season, which are among the highest-paying in the region.

In Egypt, Cairo’s benchmark index added 0.6 percent to 6,854 points, heading back to the previous peak of 6,876 points — the intraday high of Dec. 26.

The market gained despite fresh violence over the weekend.

“We expect to see more and more violence from the supporters but the market has been quite resilient as people look forward to the constitutional voting in mid-January,” said Mohamed Radwan, director of international sales at Pharos Securities.

“The question is not if to buy but whether to buy before or after the referendum.”

The priority for investors is to see the country move along a set roadmap to restore full civilian rule.

Oman ticked up 0.1 percent, while Kuwait’s benchmark was little changed.