01/08/2010
Summer spending weakening the stock market during Ramadan
A recent report shows that shares values will record its lowest levels during Ramadan this year, due to the change in the pattern of life that turns away the attention of many investors, leading to reduce the previous trading hours.
As TASI trading volumes will start to fall two weeks before the Ramadan, in which it will continue the decline during the first few weeks before they start to rise later and in the following weeks after trading (after the Eid holiday ).
Usually an increase occur in the weekly volumes more than doubled on the average during the second week of trading after the Eid holiday, compared to the lowest level of trading in Ramadan and to more than triple during the fifth week.
"Jadwa Investment" report shows that the conclusions on the performance of sectors of the market during Ramadan is hampered by the lack of data for prior periods long, as 11 of the market sectors of the 15 have been configured for the first time when re-classification of market sectors in mid-2007.
Seems that the movement of stock prices take a certain pattern during Ramadan, where we note the telecommunications sector outperformed the rest of the market sectors along with recording lowest trading volumes during the year.
It could be noted that the TASI index recorded a decline down by 0,8 percent on average in Ramadan for the past ten years.
Jadwa's report also shows that the TASI index since 2000 so far has declined on average in the fourth out of every ten weeks while it increased in the other six weeks, a pattern we expect to continue with the continuing market increase over the time.
