DUBAI - Shares in Kuwait's Zain slipped more than 4 percent as a further twist in the firm's stake sale saga sparked a sell-off from speculators, while Dubai stocks hit a fresh 11-month high.In Abu Dhabi, bank and real estate shares dragged the index down 0.4 percent, while banks were also among the top losers in Qatar, where the benchmark fell 1.5 percent.
Kuwait's bourse also declined 1.5 percent, its biggest one-day decline since July.
"It's weighing on the whole market," a trader said of the Zain sell-off, which came a day after the chairman of Kuwait investment firm Securities Group Co said the firm was studying a bid to buy a stake of up to 24.6 percent stake in Zain held by the country's sovereign wealth fund.
This comes after shareholder Kuwaiti conglomerate Kharafi Group said in September it was looking to sell 46 percent of Zain -- in which it owns about 20 percent -- to a consortium led by two Indian firms and a Malaysian billionaire.
Analysts say the stock is likely to experience much volatility as it becomes the target of speculators while a stake sale is being completed.
Dubai's star performer was Emaar Properties, which rose 2.9 percent and added the most points to the index, which rose 0.7 percent.
"There's a lot of optimism, with most stocks breaking above resistance key levels recently, especially Emaar Properties," said Vyas Jayabhanu, head of investments at Al Dhafra Financial Broker.
Matthew Wakeman, director of cash and equity linked trading at EFG-Hermes in Dubai, said the market had already priced in most of what positive expectations there are for third-quarter earnings.
"As such the question 'so now what' comes into play," he said in a research note.
"Blowout earnings will provide some juice to the upside on a stock specific basis but for the majority it's developing into a 'buy the rumour sell the fact' scenario in my view," he added.
Saudi Arabia's index ended flat at 6,400 points.
Bank stocks dragged, with Al Rajhi Bank and Arab National Bank declining 1.3 percent and 0.8 percent respectively, but shares in real estate developer Dar al-Arkan rose 2.2 percent, a day after the firm announced a new $2 billion residential project in the Saudi city of Jeddah.
TRADING HIGHLIGHTS
In the UAE Dubai's benchmark rose 0.7 percent to 2,342 points, while Abu Dhabi's declined 0.4 percent to 3,218 points.
Muscat's measure edged down 0.2 percent to 6,749 points, while in Doha the measure also declined, down 1.5 percent to 7,437 points.
The index in Kuwait declined 1.5 percent to 7,667 points. Bahrain's main measure fell 0.4 percent to 1,579 points.