The Tadawul All-Share Index (TASI) ended 0.65 percent lower at 6,302.52 points - its lowest close since Sept. 5. The sector activity for the day was mostly negative with 12 losing sectors against 3 gaining sectors. The losing sectors ranged from 0.02 percent by the Transport sector to 2.14 percent by the Building & Construction sector. On the other hand the gaining sectors for the day ranged from 0.16 percent by the Retail sector to 1.62 percent by the Cement sector. The overall market breadth for the day was negative with 41 advancers against 85 decliners giving it an AD ratio of 0.48, the Financial Transaction House (FTH) said in its daily market commentary.

The liquidity for the day reached SR2.77 billion.

After market hours, Banque Saudi Fransi, Samba Financial Group and Riyad Bank also posted a fall in third-quarter net profit.

"Third-quarter earning of banks have been disappointing, which has made investors cautious," said Hesham Tuffaha, head of research at Bakheet Investment Group.

"Most are waiting for third-quarter earnings report of big companies like SABIC and Samba Financial Group. Traders are hoping this will improve the market." Saudi Basic Industries Corp. (SABIC) fell 0.6 percent.

Other markets gained as global markets advanced and investors were optimistic about third-quarter earnings.

Markets in Abu Dhabi, Oman and Egypt reached near five-month highs, backed by a broad rallies.

Abu Dhabi's index gained 1.2 percent to 2,745 points, its highest close since May 23. Banks led the rally, with Abu Dhabi Islamic Bank gaining 2.9 percent.

The Dubai index climbed 0.9 percent to 1,759 points.

"Banks are doing well in the UAE as investors are expecting them to come up with strong third-quarter earnings," said Mohammed Yasin, chief investment officer at CAPM Investment.

"I expect the market to continue its momentum and it will be much stronger."

Oman's index gained 0.5 percent to 6,534 points as Galfar Engineering jumped 3.4 percent.

"The industrial sector has done very well. Galfar Engineering is doing well on the news that it received new projects," says Adel Nasr, United Securities brokerage manager.

Egypt's largest steel producer Ezz Steel posted its biggest single day gain in nearly 5 months, boosted by talk it may soon bid for a new production license in Egypt. Ezz Steel rose 3.5 percent, its fourth session of gains in a row.

"News that Ezz Steel will bid for the new production license is positive as they have a big chunk of the market share, and a new license will keep it in control of the market," says Ashraf Akhnoukh, senior equity sales trader at CIBC Brokerage.

Dubai's market gained 0.9 percent in a rally led by property and telecom stocks. Bellwether Emaar Properties gained 1.5 percent and telecom company du jumped 6.2 percent. Du has said it secured an additional $255 million credit facility from The Export-Import Bank of China to fund expansion of its 3G network.

Qatar National Bank (QNB) rose to a high of least two years as the banking sector in the Gulf state pushed the broader index higher. QNB rose 3.3 percent and Doha Bank gained 0.5 percent. The Qatari index gained 0.9 percent to 7,828 points.

Kuwait's index also ended higher, helped by telco Zain and expectations of strong third-quarter earnings for banks. Zain gained 2.9 percent. The index inched up 0.3 percent to 7,076 points.
 
- With input from agencies