Petrochemical stocks were the main drag as Saudi Arabia's Tadawul All Share Index (TASI) ended lower for a fifth session in seven, weighed by falling oil prices and downbeat global markets. Saudi Basic Industries Corp (SABIC) dropped 1.9 percent and Saudi Kayan fell 2.8 percent. “Saudi has re-coupled with global markets so we're following what is happening internationally,” said a Riyadh-based trader at an international bank who asked not to be identified. “It has been mostly petrochemicals and bluechip stocks that have been leading the market over the turbulent past few weeks and that has continued today.” The index fell 1.05 percent to 6,689.81 points. “Oil is falling toward $75, which is quite a drop in just a few days, so people are very cautious and investors who were buying in a big way a couple of weeks ago selling to see if they can pick up stocks again at lower levels,” said the trader. Oil prices seesawed Tuesday as investors continued to assess the impact of a $1 trillion bailout package in Europe. Benchmark crude fell 43 cents to settle at $76.37 a barrel on the New York Mercantile Exchange. That's more than $10 below the 18-month high of $87.15 reached last Monday. Oil dropped as low as $75.36 and rose as high as $77.68 during Tuesday's session. In London, Brent crude rose 37 cents to close at $80.49 on the ICE futures exchange. Dubai's index DFM slumped to a two-month low, with dominant retail investors cashing in Monday's fleeting gains as longer-term investors stay away until indebted Dubai World reaches agreement with bank creditors. The index fell 2 percent to 1,707 points, its lowest finish since March 11, tracking losses in Asia and Europe. In New York, the Dow fell 36.88, or 0.3 percent, to 10,748.26. The Dow fell by as much as 100 points shortly after the opening bell and rose as much as 89 points in afternoon trading. The S&P 500 index fell 3.94, or 0.3 percent, to 1,155.79, while the Nasdaq composite index rose 0.64, or less than 0.1 percent, to 2,375.31. Britain's FTSE 100 fell 1 percent, Germany's DAX index rose 0.3 percent, and France's CAC-40 fell 0.7 percent. Tokyo's Nikkei fell 119.60 points to 10,411.10. “Yesterday's rally was mainly down to international markets, because our markets need more time before they can enter a bull run,” said Musa Haddad, head of MENA equity desk at National Bank of Abu Dhabi. “Asia is down, so we are going down today - that's not the way we're supposed to trade. Institutions are not very active in the market because of a lack of catalysts in Dubai and Abu Dhabi.” Emaar Properties and Dubai Financial Market each fell 2.8 percent and Arabtec dropped 4 percent as this trio account for nearly two-thirds of all shares changing hands on the index. “The UAE outlook is unclear as we wait for Dubai World's debt issues to be completely sorted out so we can return to fundamentals,” added Haddad. “Right now, the market is not building any bases, it is just moving up and down in a range. That's why trading is coming from retail investors, not institutions - it's better for them to sit on the sidelines. There's no reason to buy and hold positions for the longer-term.” A deal between creditors and troubled state-owned conglomerate Dubai World could be finalised within two weeks, a top offical said on Sunday. Du fell 1.2 percent, outperforming the index, after its quarterly net profit more than quadruples. “We were quite surprised by the number of mobile subscribers added during the quarter and the mobile usage,” said Marise Ananian, vice president, telecoms, at EFG-Hermes in Cairo. “The company continues to surprise in terms of subscriber additions and is able to capture more of the market which it has been doing over the last year. We are expecting the company to continue its good performance.” Abu Dhabi's index ADI dropped 0.2 percent to 2,788 points as volumes fell to a seven-session low. Kuwait stocks fell for a sixth day in seven, with investors selling stocks as the first-quarter earnings reporting deadline nears, while downbeat global sentiment also weighed. National Bank of Kuwait dropped 3.3 percent, Agility lost 1.7 percent and Kuwait Food Co slid 1.4 percent. The index fell 0.1 percent to 7,085 points. “Only about 70 companies have published their results so far and the deadline is looming, so investors want to offload stocks before they get suspended,” said a Kuwait-based trader who asked not to be identified. “We come back to the fundamental problem that Kuwait's market lacks transparency and control. “Investment companies are a big problem - they make their money from trading the market so like to delay their results as long as possible.” Region-wide declines are also weighing on sentiment, the trader added. Oman's index MSI ended lower for a fourth day in five, tracking drops in world markets as a relief rally sparked by a $1 trillion plan to stem Greece's debt crisis gave way to doubts as to how the country will cut its budget deficit. The index fell 0.2 percent to 6,744 points.
