Mideast stocks: Background negative for Gulf markets

Gulf stock markets may remain under pressure on Tuesday after oil prices fell further and as equities globally are soft ahead of the US Federal Reserve meeting. Brent crude fell almost 4 per cent on Monday and has given up early gains in Asian trade on Tuesday. In the Gulf, telecommunications firm Etisalat will on Tuesday allow foreign and institutional investors to buy its shares for the first time. But the stock has already surged 19 per cent since Etisalat first announced the plan in June and it has not yet been included in any major emerging market indexes, so retail investors may book profits and drag it down. Saudi Arabia's Mohammad Al Mojil Group Company (MMG) may rise after announcing on Monday that it had a memorandum of understanding with Aydat Al Khaleej Co Ltd to jointly bid for and execute construction projects, according to Reuters.

--Shuvo--