The Tadawul All Share Index fell 1.55% on Tuesday, plunging Saudi Arabia's top stock index into a bear market, falling 20.5% in the last 24 weeks, or about five months. 

Saudi banks are expected to see earnings deterioration in 3Q after two consecutive rate cuts by the Saudi Arabian Monetary Authority (SAMA) in August and September. 

"In general, expectations from third-quarter results are muted. Rate cuts are spread negative since a large chunk of their deposits are cost-free anyways & loan growth is not exciting," Vrajesh Bhandari, senior portfolio manager at Al Mal Capital, told Reuters.