Saudi and Omani stocks fell for the sixth session in seven, Kuwaiti shares for the fifth in six and the Egyptian market extended its losing streak to seven trading days.

"It's still too early to position for Q2 numbers, especially with the inherent volatility," said Julian Bruce, EFG-Hermes director of institutional equity sales. 

Dubai's index fell 1.4 percent to 1,462 points, its lowest close since Feb. 9, 2009. Arabtec dipped 2.8 percent and Dubai Financial Market lost 2.1 percent. 

"Today was a reaction to the aggressive sell-off on international markets following disappointing economic numbers from China and there's a lack of interest locally in our markets so they are moving lower," said Marwan Shurrab, vice-president and chief trader at Gulfmena Alternative Investments. 

"China and Asia had been expected to lead growth in 2010, while the Europe and the US were facing problems." 

On Tuesday, a Chinese economic indicator was revised downward, hitting global sentiment.

Dubai investment bank Shuaa Capital fell 6.3 percent to a 13-month low after the chief executive of its brokerage arm resigned.

Abu Dhabi's benchmark also declined, falling 0.7 percent to 2,514 points as Aldar Properties and Sorouh Real Estate lost 3.5 and 4.9 percent respectively. 

"Abu Dhabi real estate stocks are following the high beta names in Dubai - there's no appetite from long-term investors and short term investors took intraday positions before selling off at the end of the session," added Shurrab. 

Saudi Arabia's Tadawul All-Share index (TASI) dropped 0.7 percent to 6,093.76 points. The sector activity for the day was mostly negative with 12 out of 15 sectors closing with losses ranging from 0.20 percent by the Cement sector to 1.51 percent by the Petrochemical Industries sector. The gaining sectors were Media and Publishing with 0.15 percent, Retail with 0.21 percent and Agriculture & Food Industries with 0.73 percent gains. The overall market breadth for the day was again negative with only 25 advancers against 103 decliners giving it an AD ratio of 0.24, the Financial Transaction House (FTH) said in its daily market commentary.

The value of Saudi traded shares dropped to SR2.84 billion on Wednesday compared to SR3.58 billion on Tuesday.

"Expectations are for Q2 earnings to be good for most companies," he said. "After the financial statements are issued, investors will again buy stocks and prices should increase, especially in the petrochemicals sector." 

Bakheet forecasts combined Saudi bank profits will rise 8 percent quarter-on-quarter.

In Egypt, Orascom Construction Industries fell 1.6 percent. After market hours, the firm said its BESIX affiliate had won a $750 million contract in a joint venture for work at Doha's airport in Qatar.

Kuwait's index dropped 0.7 percent to a two-week low of 6,543 points as stocks gave up Tuesday's fleeting gains. 

"Even with end-of-quarter window dressing, the market still fell because of what has been happening on global markets, so you can imagine how Kuwait will perform tomorrow, especially with the index breaking a support at 6,600 points," said a Kuwait analyst who asked not to be named. "The index is heading toward 6,200 to 6,300 points in the near- to medium-term."

The Omani index slipped 0.2 percent to 6,058 points.
   
- with input from agencies