Saudi Arabia's benchmark fell to 1.8 percent to 6,069 points, its lowest close since late 2011 as Monday's rebound proved fleeting. Saudi Basic Industries (SABIC) - the Gulf's largest listed company - tumbled 4.9 percent, while most other petrochemical stocks also fell. Banks also slid. National Commercial Bank (NCB), the largest bank by assets, dropped 4.4 percent.
In Qatar, the benchmark fell 2.0 percent to a 27-month low of 9,477 points. All traded stocks declined as both foreign and regional investors sold up. Qatar National Bank (QNB), the bourses' largest stock by market value, plunged 3.1 percent. Investor worries over the impact of lower spending by the government and related entities on QNB's growth potential could be a reason for its stock price slide, NBAD Securities said in a note.
Qatari banks are expected to deliver weak profits in theie forthcoming annual financial statements, the note added. Banks also weighed on Abu Dhabi's index for a second day. The benchmark fell 1.5 percent as investors fretted about lenders' profitability ahead of fourth-quarter earnings.
Abu Dhabi Islamic Bank and First Gulf Bank dropped 5.9 and 2.6 percent respectively. Dana Gas declined 2.0 percent. The Emirati energy company said it aims to slash its head office workforce by 40 percent and cut general and administrative costs by half between 2015 and early 2016. Dubai's bourse dipped 0.7 percent to 2,921 points, but above an intraday low of 2,874 points. The index is only 70 points shy of December's two-year low.
Volumes were modest. Arabtec and Emaar Properties between them accounted for 58 percent of all shares traded on the index. Emaar, which started 2016 with a sharp sell-off after fire struck one of its Dubai luxury hotels on New Years Eve, declined 3.2 percent, taking its year-to-date decline to 14.2 percent.
Arabtec shrugged off early-session losses to end 4.1 percent higher, its third straight gain. The builder is up 2.4 percent in 2016. "Unless there are major negative or positive surprises to fourth quarter earnings, stock markets will continue to be weak with no bright spots," said Sebastien Henin, head of asset management at Dubai-based The National Investor.
Cairo's main index fell 2.6 percent as most of the 26 traded stocks fell more than 1 percent. The market is down 7.7 percent in 2016. Foreign and non-Egyptian Arab traders were net sellers for a second consecutive day, bourse data showed. Orascom Telecom, one of regional investors' preferred stocks, and Global Telecom, a foreign fund manager favourite, fell 4.6 and 7.2 percent.