Sorouh shares fell 3.7 percent to 1.32 dirhams, its lowest finish since at least December 2005.

The developer said it will need extra funds this year after making a fourth-quarter loss of 199 million dirhams ($54.18 million), compared with a profit of 28.1 million dirhams in the year-earlier period.

In January, rival Aldar Properties reported a record quarterly loss as it booked massive writedowns on its assets and has made losses for five straight quarters, while Dubai’s Emaar Properties also missed profit forecasts as impairments ate into its bottom line.

“The reaction to Sorouh’s results was justified and I expect the stock to trade around 1.30 to 1.40 dirhams until its first-quarter results,” said Samer Al-Jaouni, general manager of Middle East Financial Brokerage Co.

“What happened with Aldar was a signal to expect something similar from Sorouh, with impairments affecting all UAE developers. Investors will differentiate between real estate companies. Emaar was able to generate good operating profits, so it doesn’t deserve to be put in the same bracket as Aldar.”

Aldar rose 1.1 percent, trimming its year-to-date drop to 20 percent, but Emaar dipped 0.3 percent.

UAE property values face further double-digit declines and Dubai house prices are about 60 percent below a 2008 peak as over-supply and a lack of demand weigh, spurring local builders and contractors to shift to other Middle East markets, Reuters said.

Drake & Scull rose 4.6 percent to a 15-month high after it won a $533 million Saudi contract.

Kuwait Finance House (KFH) fell 4.9 percent, its largest drop in a year, after the Islamic lender’s fourth-quarter net fell 29 percent, missing forecasts.

“KFH missed our fourth-quarter estimates by a large margin — it usually enjoys its best quarter in Q4, but provisioning requirements seem to have risen in 2010, more so in 4Q10,” said Naveed Ahmed, Global Investment House bank analyst.

Kuwait’s bank index dropped 2.3 percent, trimming its 12-month gains to 39 percent. Bank rose on bets a $104 billion state development plan, slated to be part-financed by listed lenders, would provide risk-free profits.

“Kuwait’s spending plan has yet to lead to anything concrete on the ground,” added Ahmed. “If it does happen, then we will revise our assumptions and valuations, more possibly in a favorable manner, but for now we don’t see value in Kuwait banks - some are over-valued, others fairly priced.”

Kuwait’s index dropped 0.8 percent to a 24-week low of 6,661 points.

The Dubai index rose 0.2 percent to 1,608 points. The Abu Dhabi index fell 0.6 percent to 2,711 points.

The Qatari index dropped 0.9 percent to 8,936 points.

In Saudi Arabia, the Tadawul All-Share Index (TASI) eased 0.04 percent to 6,624 points. The sector activity for the day was mostly positive with 11 out of 15 closing with gains ranging from 0.04 percent by the Insurance sector to 1.67 percent by the Hotel & Tourism sector. On the other hand the losing sectors ranged from 0.18 percent by the Telecommunication & Information Technology sector to 0.76 percent by the Agriculture & Food Industries sector. The overall market breadth for the day was negative with 54 advancers against 69 decliners giving it an AD ratio of 0.78, the Financial Transaction House (FTH) — licensed by the Capital Market Authority (CMA) — said in its daily market commentary.

The Saudi stock market turnover reached SR3.20 billion on Monday.

The Omani index climbed 0.7 percent to 7,001 points.

The Bahraini measure rose 0.1 percent to 1,470 points.