Unified Stock Exchange for GCC

Mar 15, 2015

Several factors argue for the case for a unified stock exchange in the GCC region including increased trade volumes, improved liquidity and lower trading costs on back of economies of scale . However, the first step towards such unification of stock exchanges requires the union of currencies and harmonizing of monetary operations undertaken by the GCC central banks.

Fall Together, Rise Alone!

Jan 18, 2015

This is a strange pair of two markets, Saudi Arabia and India. One is a rich oil producer sitting on huge amount of wealth and is 7 times richer than India on a per capita basis. Another is a growing emerging market three times the size of Saudi Arabia.

Why is Liquidity important? Some Research Snippets

Apr 20, 2014

Liquidity is at the backbone of any market development and GCC stock markets are no exception. Strong oil price backed wealth effect coupled with retail nature of the market triggering speculative activity contributed to very robust liquidity levels in the past, especially before the financial crisis. Liquidity is generally measured as total value traded and is expressed as a % of total market capitalization to arrive at the velocity. A high velocity may indicate that liquidity is running ahead of the market and vice versa. Also, improved liquidity has many benefits including cost of transaction.

Never Scream Sell in GCC!

Aug 13, 2012

Since 2010, analysts scream either a buy or hold nearly 90% of the time. In the 2.5 years of study, only during 2H 2010 the market turned reasonably positive validating the scream. In all the other cases, the market movement was totally in contrast to the scream, especially during 2H 2011 when markets tanked 8.2% while 96% of recommendations were either buy or hold. This applies even at stock specific levels. We produce below some instances where analysts steadfastly screamed buy regardless of sharp drop in share price and side way movement for a long time.