Saudi Arabia's shares edged lower with petrochemical stocks weighing, despite bellwether Saudi Basic Industries Corp (SABIC) posting record quarterly earnings and beating estimates.
The world's largest chemicals producer climbed 0.5 percent after reporting a net profit of SR8.2b ($2.2b), up 54 percent.
"Earnings were led by exponential profitability growth in the fertilizer segment in tandem with lower financial costs for the quarter suggesting expectations of a slowdown in petrochemicals did not materialize," Muhammad Faisal Potrik, research analyst at Riyad Capital said in a note.
Recent declines in oil prices may yet impact the bottom line in the fourth-quarter, with a lag effect cushioning the full impact of lower prices in the earnings, he added.
The benchmark slipped 0.3 percent to 6,114 points, extending its 2011 losses to 7.7 percent.
It dipped in a regional decline, with local sentiment dampened after losses in world stocks after Germany warned against hopes the eurozone debt crisis can be solved at the world leaders' summit next week.
State-controlled Saudi Electricity Co (SEC) dropped 2.2 percent after posting a 6 percent fall in quarterly profit, missing forecasts.
Food company Savola Group's shed 0.4 percent despite its third-quarter profit rising 8.8 percent beating some analyst forecasts.
Qatar's shares slipped from Monday's four-week high as institutional investors sold amid global woes.
The index eased 0.6 percent to 8,416 points but was still the most resilient Gulf market with yearly losses at 3.1 percent.
"The global gloom will overshadow Qatar's overall good performance," said a Doha-based trader on condition of anonymity. "Volumes may be affected and a 50 base points drop is very probable. If it gets low enough, we'll see some local buying interest."
Most stocks wee down despite posting strong earnings results.
Qatar Gas Transport Co (Nakilat) was near-flat after the world's largest shipper of liquefied natural gas reported a 41.6 percent jump in third-quarter profit on Tuesday.
Masraf Al Rayan fell 0.1 percent, despite posting a 8.9 percent rise in nine-month net profit of QR1bn.
Commercial Bank of Qatar (CBQ) dropped 2.1 percent, after it reported an 8.7 percent jump in third-quarter profit on Monday, buoyed by increased lending and deposits.
US and European stocks fell on Monday and the euro slipped, after Germany dashed hopes that the eurozone debt crisis would be resolved at next Sunday's summit of European leaders. Asian shares also fell on Monday.
Dubai's bourse edged up from Monday's 30-month low but trading was muted. Other Gulf markets opened flat.
Emaar Properties rose 0.4 percent and Air Arabia gained 0.2 percent.
The index climbed 0.07 percent to 1,367 points.
Elsewhere, Kuwait's National Industries Group Holding (NIG) recovered Monday's losses, up 2 percent, after it said it was looking to sell its stake in Mabanee Real Estate Co. Shares in the latter traded flat.
Kuwait, Oman and Abu Dhabi's markets were also flat.