Saudi Arabia and Qatar stocks fell from three-week highs, while Dubai stocks lost 2.5 percent. Most markets had surged since slumping to multiyear lows in early March, Reuters said.

The Tadawul All-Share Index (TASI) plunged 1.25 percent to close at 6,230.70 points. The sector activity for the day was all negative except one gaining sectors. the losing sector ranged from 0.18 percent by the Media and Publishing sector to 2.05 percent by the Hotel & Tourism sector. On the other hand, the gaining sector was the Multi-Investment sector with 1.18 percent surge. The overall market breadth for the day was negative with 47 advancers against 85 decliners giving it an AD ratio of 0.55, the Financial Transaction House (FTH) — licensed by the Capital Market Authority CMA) — said in its daily market commentary.

The stock market turnover for the day reached SR 5.82 billion.

“The markets had gone up a lot and what’s happening in Bahrain is concerning - we don’t know how this will end,” said Hashem Montasser from Dubai’s Frontlane Capital. “People were under the impression the Bahrain situation would be resolved quite quickly - the risk profile of the GCC remains elevated.”

Zain Saudi climbed 6.3 percent to SR7.60. Kingdom Holding Co. and Batelco made a joint bid of $949 million for a quarter-stake in the telecoms operator.

This offer is priced slightly above Zain Saudi’s nominal share value of SR10, which parent Zain has accepted, sources said.

Agility climbed 2.6 percent after the logistics firm and France Telecom said they would buy a minority stake in Iraqi mobile operator Korek Telecom, Reuters said.

The Kuwaiti index rose 0.2 percent to 6,407 points.

“The Iraqi market still has high growth potential and it only has three players,” Scott Darling of Nomura wrote in a note. “The deal seems attractive on a valuation point of view, but with Agility’s focus on logistics ... this does not change our investment case on the company.”

The Saudi index fell, ending a seven-session rally, with Japan’s earthquake likely to have implications for the Kingdom. Nearly half of Saudi exports are destined for the Far East, Reuters quoted Hesham Tuffaha of Bakheet Investment Group as saying.

Yet the quake, which has left a nuclear power plant stricken, may boost Gulf exports in the longer term, said Nomura’s Darling, although traders betting Qatar Gas Transport Co. (Nakilat) will benefit may be disappointed.

Nakilat fell 1.3 percent, having gained in early trading.

An estimated 20 percent of Qatar’s liquefied natural gas (LNG) exports are shipped to Japan.

Demand for petrochemicals, notably from Saudi Basic Industries Corp. (SABIC) and Rabigh Refining and Petrochemical Co. may rise as Japan rebuilds, he added. These two stocks fell 1.5 and 0.7 percent respectively.

The Qatari index dropped 1.8 percent to 8,302 points.

The Dubai index dropped 2.5 percent to 1,475 points. The Abu Dhabi benchmark rose 1 percent to 2,629 points.

The Omani index climbed 0.3 percent to 6,401 points.

The Bahraini measure fell 1.6 percent to 1,395 points.