STOCKS NEWS EUROPE-Dexia, KBC recover; slim Dubai exposure

Shares in Franco-Belgian financial services group Dexia (DEXI.BR) and Belgium's KBC (KBC.BR) both recover from sharp early losses after they say that their Dubai exposure is limited.

Dexia, down 5.1 percent on Thursday, and off 4.2 percent in early trade on Friday is down 0.5 percent by 1143 GMT. KBC, which lost 7.5 percent in the previous session and also fell sharply on open, is up 1.0 percent. The DJ Stoxx European banking index is 0.1 percent stronger .SX7P.

Dexia says it has a limited exposure on DP World Ltd through bonds of Dubai Port and that DP World Ltd is not involved in announced debt restructuring. KBC says it is a limited participant in a $5 billion syndicated credit.

"Initially we saw a sell-off of all stock. Now people are looking at fundamentals and whether there is any real exposure," a Brussels-based trader says.

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