I recently started using android actionbars and contextual action bars (CAB).
I have just one activity which is a ListActivity. Basically I use the following code snippe
Only trying to support ICS devices and up but this new layout does what you are trying to achieve, in keeping the selected line highlighted.
adapter = new SimpleCursorAdapter(getActivity(), android.R.layout.simple_list_item_activated_1, null, from, to, 0);