Saudi Basic Industries Corp. (SABIC) fell 0.9 percent and Saudi International Petrochemical Co. (Sipchem) lost 1.1 percent, dragging the index 0.8 percent lower.

Tadawul  All-Share Index (TASI) fell 0.82 percent to 6,668.13 points after losing 55.18 points. The sector activity for the day was mostly negative with 12 out 15 with lose ranging from -0.14 percent by the agriculture & food industries sector to 1.64 percent by the energy & utilities sector. On the other hand the gaining sectors were the hotel & tourism sector with 0.05 percent, the real estate development sector with 0.19 percent and the media and publishing sector with 0.83 percent. The overall market breadth for the day was negative with 29 advancers against 102 decliners giving it an AD ratio of 0.28, the Financial Transaction House said in its daily market commentary.

The stock market turnover reached SR3.95 billion.

“This is only short-term and the market is likely to pick up again,” Haddad said, adding that the recent rise in the dollar had also helped ease oil prices, affecting petrochemical stocks, but that the outlook for the Saudi market in 2011 was bright,” said Musa Haddad, head trader in National Bank of Abu Dhabi’s asset management group.

On Monday, Reuters learned that a Saudi stock market committee is moving closer to allowing foreign investors direct market access.

“We might see the markets opening up in the first half of 2011 or probably in the second quarter,” a source familiar with discussions said. 

“It’s not a question of if it will happen but when it will happen.”

Other regional bourses also slid as investors geared up for quarterly earnings announcements, with banking and real estate sectors particularly in focus in the United Arab Emirates.

Bellwether Emaar Properties slipped 0.6 percent in Dubai while Abu Dhabi’s Aldar Properties lost 2 percent.

“It’s going to be a quiet January,” said Vyas Jayabhanu, head of investments at Al Dhafra Financial Broker. 

“Based on last year’s performance, people are not too enthusiastic about positive surprises (from the earnings). Sentiment is improving but it won’t change overnight. The region has to attract foreign money again,” he said.

Dubai’s index slipped 0.4 percent and Abu Dhabi’s measure lost 0.3 percent.

Fourth-quarter earnings are expected to filter in from this week in Saudi Arabia and Qatar.

Oman’s benchmark shed 0.5 percent as banks slipped. Bank Muscat, the Gulf state’s largest bank by market value, fell 0.9 percent.

“The next support level will be at 6,930 points while the resistance would be at 6,980 and 7,000 levels respectively,” said an analyst note from Gulf Baader Capital Markets.

Markets in Egypt and Bahrain ended almost flat, while Qatar’s index declined 0.3 percent as did Kuwait’s benchmark.

— With input from agencies