Most Middle East markets fell, tracking declines in oil and global stocks as investors fretted over the likely scale of a new US quantitative easing program.

OT fell 5.4 percent to its lowest close since March 17, 2009. The company's share prices prior to Jan. 31, 2010 were re-adjusted because of an $800 million rights issue.

Traders also cited a report that Algeria will not begin talks on nationalizing Orascom's local unit Djezzy until next year, adding to doubts about the Vimpelcom deal.

The Egypt index fell 1.7 percent to 6,991 points.

Saudi Basic Industries Corp. (SABIC) trimmed early-session losses, ending 0.5 percent lower after a Saudi newspaper quoted a government official as saying China would not impose anti-dumping duties on imports from Saudi Arabia.

Both China and India had launched probes of Gulf firms, including SABIC, to assess whether methanol was being dumped on the Chinese market at below-cost prices.

The Tadawul All-share index (TASI) fell 0.36 percent to 6,309.92 points, taking its October losses to 4.6 percent as sector earnings broadly missed estimates because of higher-than-expected provisions.

The sector activity for the day was mostly negative with 12 out of 15 sectors closing with losses ranging from 0.01 percent by the Industrial Investment sector and the Media and Publishing sector to 0.75 percent by the Energy & Utilities sector. On the other hand the two gaining sectors were Multi-Investment and Real Estate Development with respective gains of 0.14 percent and 0.28 percent. The Hotel & Tourism sector had no change. The overall market breadth for the day was negative with 39 advancers against 80 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 SR2.40 billion.

National Bank of Abu Dhabi fell 0.4 percent and Abu Dhabi Commercial Bank rose by the same margin after reporting their third-quarter earnings. The Abu Dhabi index fell 0.1 percent to 2,822 points. 

"All banks are showing flat to negative loan growth - their capital adequacy levels are very high and even increasing, which shows banks remain very cautious," said Robert McKinnon, ASAS Capital chief investment officer.

"In terms of capital efficiency, they are being very inefficient, which could indicate they feel there's more risk in their loan book."

NBAD reported near-flat profit growth to miss analysts' forecasts, while ADCB's quarterly profit surged, largely from increased trading and investment income.

"These trading profits are one-off and very hard to generate all the time," said McKinnon. "Bank results are pretty much lackluster."

In Kuwait, Kharafi-linked companies rose on expectations its consortium's deal to sell a 46 percent stake in telecoms operator Zain would go through. 

Zain was unchanged, but National Investments Co. climbed 2.1 percent and Al-Mal Investment Co. added 3.3 percent. Kharafi owns stakes in all three firms.

On Tuesday, Kuwait's bourse said it vetoed Securities Group's bid to buy a 5 percent stake in Zain.

The Kuwaiti index rose 0.3 percent to 7,049 points.

The Qatari index fell 0.3 percent to 7,795 points.
 
- With input from agencies