Dubai's index fell 1.8 percent to close at 1,336 points —
its lowest level since June 2004.
"Liquidity has been very thin and there is no
interest in the market," said Rami Sidani, Schroders Middle East head of
investment. "There is no fundamental reason. People are taking risk off the
table before the holidays."
Bellwether Emaar Properties fell 3.1 percent, contractor
Arabtec shed 3 percent and telecoms operator du lost 2.7 percent.
Abu Dhabi's stocks were also lower, with the index declining
1.3 percent to 2,343 points, its lowest close since March 2009.
Aldar Properties fell 3.5 percent to a new record-low
despite saying it had no plans to delist from the Abu Dhabi stock exchange.
First Gulf Bank dropped 2.6 percent.
"Up until earnings in Q1 next year, you'll see
further volatility in the market," said an Abu Dhabi-based trader who
declined to be names. "Because people are expecting the worst, any
improvement could result in a relief rally."
In Saudi Arabia, Almarai Co. hit a 10-month high after
saying it had acquired Argentina farm operator Fondomonte.
The deal will help the Gulf's biggest dairy firm by
market value to secure feed for its dairy herd and poultry businesses. Shares
in Almarai gained 2.8 percent to reach their highest close since Feb. 21.
"Almarai's acquisition ... is a move upstream, which
will allow them to both secure feed supplies and boost profit margins in the
future," said Sleiman Aboulhosn, assistant fund manager at Dubai-based Al-Masah
Capital. "The end result may be a noticeable improvement in the company's
overall profitability."
Southern Province Cement hit an all time high, rising 5.1
percent. The firm said in a statement it expected its quarterly earnings to
rise 48 percent.
The Tadawul All-Share Index (TASI) climbed 0.7 percent to
6,330.01 points — its highest close since Aug. 3.
Saudi insurance firm Allianz SF jumped 9.7 percent after
saying its founding shareholder Allianz France International will merge with
Allianz France.
Most petrochemical stocks also rose, with Saudi Basic
Industries Corp. (SABIC) climbing 1.1 percent, the main support for the index.
Traders now believe gas subsidies to petrochemical
producers will remain at current levels for the next year, having previously
thought these subsidies could be cut, said Turki Fadaak, head of research at
Al-Bilad Investment.
"There is talk that contracts will be
extended," he said.
Saudi Hollandi Bank gained 3.2 percent. The lender said
it planned a 20 percent capital increase through a bonus share issue. It also proposed
a cash dividend of 1 riyal for 2011.
In Kuwait, the index ended 0.2 percent lower at 5,812
points, while bourses in Oman and Qatar ended near-flat.
