The Kuwait benchmark slipped 0.2 percent, extending 2011 losses to 15.8 percent.

“Kuwait is made up mainly of local investors and if you’re going to have political problems, you’ll see a sell off,” a Kuwait-based trader was quoted as saying in a Reuters report.

“We had more liquidity earlier this week but it’s all gone away. Nothing today matters except the politics,” said the trader.

National Industries Group and Gulf Bank each fell 1.9 percent, while Kuwait Finance House dipped 1.1 percent.

In Egypt, the benchmark index fell 1.1 percent to its lowest level in five weeks ahead of Friday’s street protest led by radical groups who want the government to scrap plans to lay down principles for a new constitution before it is written.

Reuters said investors were also awaiting the outcome of protests by residents of the northern Egyptian port city of Damietta, who are complaining about what they say is environmental damage from a nitrogen factory owned partly by Canada’s Agrium.

“We’re slowing down in anticipation of tomorrow’s events but, more importantly, investors are anxiously waiting to see what that supreme (army) council will do with the Agrium debacle,” Osama Mourad, chief executive of Arab Finance Brokerage, was quoted as saying in the report.

The market was led lower by Commercial International Bank, falling 1.3 percent. It reported worse-than-expected earnings this week.

Reuters said most other Gulf markets also ended lower in thin trade, taking a weak lead from a dip in world stocks on rising fears the euro zone debt crisis would spiral out of control.

Dubai’s benchmark ended 0.6 percent lower, down in four of the past six sessions.

Emirates NBD was the main drag, dropping 2.4 percent. Real estate stocks also weighed with Emaar Properties down 0.8 percent and Deyaar Development falling 4 percent.

Abu Dhabi’s benchmark eased 0.08 percent to its lowest close in three weeks.

“Right now, we are monitoring global markets and hoping they don’t breach their levels because if they do, we might be seeing another major sell off,” Haissam Arabi, chief executive and fund manager at Gulfmena Investments, was quoted as saying in the Reuters report.

In Qatar, the index eases 0.05 percent to 8,744 points.

Masraf Al Rayan and Commercial Bank of Dubai slip 0.4 and 0.5 percent respectively. 

“More or less, Q3 results are out and it’s absolutely dead because everybody realized that there are no regional factors that might drive the markets,” said Ibrahim Masood, senior investment officer at Mashreq bank.

Elsewhere, Oman’s index ended 0.2 percent lower.

Raysut Cement was the main drag, dropping 3 percent. Heavyweight Bank Muscat slipped 1.1 percent and Bank Dhofar shed 0.5 percent.