scholarly journals Tadawul and Dubai Financial Market - A Comparative Study

2020 ◽  
Vol 9 (2) ◽  
pp. 45
Author(s):  
Issam Tlemsani ◽  
Fai Albadeen ◽  
Ghada Althaaly ◽  
Maha Aljughaiman ◽  
Hala Bubshait
Keyword(s):  
Comparative Study ◽  
Financial Market ◽  
Growth Rates ◽  
Strong Influence ◽  
Stock Exchange ◽  
Stock Exchanges ◽  
Gdp Growth ◽  
Economic Market ◽  
Stock Valuation ◽  
Better Than

This research is intended to identify the fundamentals of stock valuation and utilize them in the macro analysis and micro valuation of two major stock exchanges ‘Tadawul’ and ‘Dubai Financial Market’. These stock exchanges are compared in terms of their strengths and weaknesses according to significant economic indicators, alongside essential stock market determinants, all the while highlighting relevant relationships among them. Upon assessment, GDP has a strong influence on the valuation of the market and KSA’s GDP growth in the last two years has been slightly higher than UAE’s growth, affecting projected GDP growth rates. Tadawul performed better than DFM in P/E ratio indicating a higher willingness to invest in the Saudi stock exchange as well as a higher return expectation. DFM’s stocks are highly undervalued. It can be concluded that both stock exchanges are strong and competitive respectfully, and their potential for growth depends on the economic market that they originate from.

Risk Comparison of Karachi Stock Exchange with Next Eleven Countries: A Country Beta Approach

2014 ◽  
Vol 4 (1) ◽  
pp. 202
Author(s):  
Aqeel Abbas ◽  
Sajjad Ahmad Baig ◽  
Muhammad Zia-ur-Rehman ◽  
Muhammad Abrar
Keyword(s):  
South Korea ◽  
Stock Exchange ◽  
Country Risk ◽  
Stock Exchanges ◽  
Global Index ◽  
The World ◽  
Better Than

This study is based on the Country risk of different stock exchanges of the world. Here Country risk is derived from the Country Beta Approach, as this approach is described by the Erb, Harvey and Viskanta (1996). Specifically, this study is based on the risk comparison of KSE 100 with next eleven countries (South Korea, Iran, Mexico, Philippine, Indonesia, Turkey, Egypt, Nigeria, Pakistan, Vietnam and Bangladesh), which are defined by the Goldman Sachs (2005). For this purpose, the stock exchange's data of these countries is compared with the global index. Actually, the global index is consisted on the 44 countries of the world. Here only one factor is discussed, which is a country risk (country beta). Actually the riskiness is measured in this study on the basis of beta, higher the beta means higher the risk; lower the beta means low the risk. The result shows that the performance of KSE is much better than the next eleven economies but Nigerian stock exchange has less risk than the KSE 100.

scholarly journals Alternative Securities Markets as Financing Sources for SMEs – Selected Aspects of AIM and NC

2017 ◽  
Author(s):  
Joanna Małecka
Keyword(s):  
Financial Market ◽  
Capital Market ◽  
Stock Exchange ◽  
Annual Reports ◽  
Stock Exchanges ◽  
Special Focus ◽  
Growing Stock ◽  
Warsaw Stock Exchange ◽  
Market Operation ◽  
The Uk

Small and medium-sized enterprises are the foundation for the development of each contemporary national economy. Their number affects macroeconomic indices of economies and directly translates into the labour market created by SMEs. This article aims to investigate the key conditionings behind the macroeconomic significance and legal factors of the financial market operation in Poland and the UK, with particular emphasis on the stock exchange as the fundamental element of the capital market. Both AIM and NewConnect are platforms dedicated to SMEs, which have been allowed easier access to this capital market segment by minimising mandatory legal conditions. This study analyses the number of listed companies and their capitalisation values in 1999–2015, covering: the rules of the financial market operation, with a special focus on the legal bases of the stock market operation in the economies investigated; legal conditions for the development of this economic segment; and a detailed analysis of the number of participants and capitalisation values achieved on the Warsaw and London Stock Exchanges, in particular AIM and NewConnect. This paper builds on source data from various annual reports and stock exchange publications drawn up and made available by stock exchanges and financial supervisors. The attempt to compare the indices and capacities of the WSE and the NC with the biggest European player is motivated by the fact that the Warsaw Stock Exchange is classified as the largest and most dynamically growing stock exchange in Central and Eastern Europe.

scholarly journals Measuring Co-Movements and Linkages between Nigeria and the UAE Stock Exchanges: Is there Opportunity for Portfolio Building?

2020 ◽  
Vol 1 (2) ◽  
pp. 106-122
Author(s):  
Shafiu Abdullahi
Keyword(s):  
Stock Market ◽  
Financial Market ◽  
Market Integration ◽  
Stock Exchange ◽  
Portfolio Diversification ◽  
Empirical Literature ◽  
Stock Exchanges ◽  
Financial Contagion ◽  
Stock Market Integration ◽  
Short Run

Purpose: The main objective of this study is to examine the relationship between Nigerian Stock Exchange and Dubai stock exchange with the aim of finding out the direction of movements between their respective indices. Approach/Methodology/Design: The methodology adopted for the analysis is ARDL cointegration model and the Generalized Method of Moment (GMM). This is because of their known efficiency in detecting patterns between variables. Findings: The result of the short-run analysis using GMM shows that there is existence of short-run causality between the Dubai financial market (DFM) and the Nigerian stock exchange (NSE). Thus, for investors looking for short- run arbitrage opportunity between the markets, they shall look elsewhere. But, the result of bound testing has shown lack of cointegration between the two markets. This is a sign of existence of opportunities for portfolio diversification between Nigeria stock exchange and Dubai financial market, since the two markets are not cointegrated in the long-run. Practical Implications: The study helps bridge the empirical literature gap in stock market integration and portfolio diversification with reference to the Nigeria and UAE. It will, therefore, guide local and foreign investors with interest in Nigeria and UAE Stock Exchanges. It will also guide Nigerian and UAE policy makers to understand the market better, especially as it concerns financial contagion. Originality/value: This study provides further evidence on stock market integration in emerging markets. New researches shall adopt different methodology such as use of volatility tracking models to measure volatility linkage between the markets.

scholarly journals Application of the Divisia Index with Interconnected Factors in the Warsaw Stock Exchange Index (WIG) fluctuation analysis

2017 ◽  
Vol 4 (330) ◽  
Author(s):  
Jacek Białek ◽  
Radosław Pietrzyk
Keyword(s):  
Financial Market ◽  
Market Research ◽  
Stock Exchange ◽  
Fluctuation Analysis ◽  
Gdp Growth ◽  
Time Interval ◽  
Divisia Index ◽  
Bear Market ◽  
Warsaw Stock Exchange ◽  
Main Factors

This paper presents a method of economic factorial analysis based on the Divisia index extended to interconnected factors. We verify the applicability of the presented method to financial market research by examining fluctuations of the Warsaw Stock Exchange WIG Index (WIG). We consider four main factors of WIG changes: the GDP growth, the PLN/EUR rate, the S&P500 and the unemployment rate. Due to computational reasons we apply the transformation that produces variables in the bigger the better form. We use quarterly data from the time interval between 2003 and 2014 divided into periods of bull and bear market. All considered variables are assumed to change linearly between quarters. The main conclusion is that during market prosperity, GDP and S&P500 changes exhibit the strongest influence on WIG changes.

scholarly journals Purging of impure income: a comparative study of the existing purging methodologies

2017 ◽  
Vol 9 (1) ◽  
pp. 62-80
Author(s):  
Wasiullah Shaik Mohammed ◽  
Mufti Abdul Kader Barkatulla ◽  
Mohammed Husain Khatkhatay ◽  
Zaffar Abbas
Keyword(s):  
Comparative Study ◽  
Stock Exchange ◽  
Company Law ◽  
Capital Gains ◽  
Stock Exchanges ◽  
Proper Understanding ◽  
Content Type ◽  
Software Application ◽  
Personal Understanding

Purpose The purpose of this paper is to study the concept of purging and present a comparative study of the existing purging methodologies prevailing in the market with a view to evolving a more effective method of capturing the entire impure income to be purged. Design/methodology/approach To illustrate the present discussion, a case study of purging based on numerical examples has been included. The argument has also been supported with empirical data related to the universe of Sharīʿah-compliant stocks listed on Indian stock exchanges. Findings During the study, it was found that the existing purging methodologies of calculating impure income to be purged have conceptual and practical shortcomings. Research implications/limitations The scope of the current research is limited to calculation of impure income which accrues on account of Sharīʿah non-compliant investments directly or indirectly. It does not try to quantify the benefit which may be imputed in the form of capital gains made in trading of the investee company shares due to higher market value of the shares as a result of the impure income earned by the investee company. The paper has focused on identifying and calculating the impure income on account of interest. Impure income earned from specific Sharīʿah non-compliant products or services has not been considered directly. The reason for this is that companies dealing in such products or services are generally excluded at the business screening stage itself. In the case of those companies which derive a relatively small proportion of their total income from such activities and pass the business screening stage, the quantum of the impure income is not generally reported separately in company accounts. Practical implications/limitation The result of adopting the proposed methodology will lead to complete purging of impure income (to the extent that is possible under present Company Law and stock exchange reporting regulations). Implementation of the proposed method requires a proper understanding of the working of listed companies and either a sound mathematical background or access to a software application to calculate the impure income to be purged. Originality/value The current paper is original and based on the authors’ personal understanding and experience of providing Sharīʿah consultancy services related to Sharīʿah-compliant investments.

scholarly journals Modeling and Forecasting the Algiers Stock Exchange Returns using the Box-Jenkins Methodology

2019 ◽  
Author(s):  
Mohamed Samir Boudrioua
Keyword(s):  
Stock Exchange ◽  
Moving Average ◽  
Forecast Accuracy ◽  
Information Criterion ◽  
Stock Exchanges ◽  
Autoregressive Integrated Moving Average ◽  
Modeling And Forecasting ◽  
The World ◽  
One Year ◽  
Better Than

The Algiers Stock Exchange (ASE) is the only stock exchange in Algeria. It’s one of the newest and smallest emerging stock exchanges in the world. The focus of this paper is to model and forecast monthly returns of the ASE index (DZAIRINDEX) using The Box- Jenkins methodology. The period of this study is from Jun 2010 to July 2019. According to Akaike’s Information Criterion (AIC) estimator, the Seasonal Autoregressive Integrated Moving Average SARIMA(2,0,0)(0,0,1) is chosen as the best model for forecasting the monthly DZAIRINDEX returns. Diagnostic tests confirm that the fitted model is adequate, where the residuals of this model are normally distributed with no autocorrelation and no heteroskedasticity. The forecast of the monthly DZAIRINDEX returns for one year ahead using this model shows a decreasing fluctuations trend. Based on different measures of forecast accuracy such as ME, MAE, RMSE, MASE, we show that the forecast accuracy of SARIMA(2,0,0)(0,0,1) is acceptable and this model performs much better than a naïve model. These results could be used by the financial communities in Algeria to deal with stock exchange risks and to improve their decisions.

scholarly journals Refining going-public methods

2021 ◽  
Vol 27 (4) ◽  
pp. 934-960
Author(s):  
Artur A. NAZAR'YANTS
Keyword(s):  
Financial Market ◽  
Stock Exchange ◽  
Equity Capital ◽  
Stock Exchanges ◽  
Public Companies ◽  
Russian Market ◽  
Scientific Methods ◽  
Innovative Methods ◽  
Analysis And Synthesis ◽  
General Scientific

Subject. The article examines the foreign experience of global trading platforms related to alternative ways of listing company shares on stock exchanges. Objectives. I study the feasibility of adapting other methods of placing shares on Russian stock exchanges in order to develop the national financial market and increase the number of traded shares. Methods. The study is based on general scientific methods of analysis and synthesis, comparative and comparative analysis, graphical method of analysis. Results. As a result of the analysis of international experience and innovative methods of listing, it was determined that there are legal obstacles that currently limit the possibility of using new methods of listing shares in the Russian market. At the same time, there is a demand from small and medium-sized businesses, as well as large Russian non-public companies, for simpler and less expensive ways to enter the equity capital market. Conclusions. The emergence of additional ways for companies to enter the stock exchange opens up more diversified and less expensive ways for issuers to place their shares, as well as expands the investor base and the overall attractiveness of the Russian financial market.

REGULATING TRANSATLANTIC STOCK EXCHANGES

2008 ◽  
Vol 57 (4) ◽  
pp. 827-862 ◽  
Author(s):  
Pierre Schammo
Keyword(s):  
Financial Market ◽  
Stock Exchange ◽  
The Other ◽  
Stock Exchanges ◽  
High Profile ◽  
Starting Point ◽  
The One ◽  
Securities Laws ◽  
Technological Integration ◽  
Global Stock

AbstractThis paper examines the regulatory questions surrounding transatlantic stock exchange consolidation. Underlying these questions is, in essence, a problem of fit between, on the one hand, the market space and, on the other hand, the regulatory space. Legislation which has predominantly a domestic focus is outdated in view of the increasingly global focus of financial market actors. High-profile mergers such as NYSE Euronext have brought the problem of the regulation of transatlantic or indeed global stock exchanges to the fore. Which national securities laws apply? What consequences does technological integration have for the regulatory position of exchanges and financial market actors? What are the extraterritorial implications? This article takes these questions as a starting point for investigating the problems of, and solutions to, transatlantic stock exchange consolidation.

scholarly journals Synergies, Risks and the Regulation of Stock Exchange Interconnection

2017 ◽  
Vol 11 (2) ◽  
pp. 291-322 ◽  
Author(s):  
Joseph Lee
Keyword(s):  
Financial Market ◽  
Stock Exchange ◽  
Major Obstacle ◽  
Stock Exchanges ◽  
Virtual Model ◽  
Clearing House ◽  
London Stock Exchange ◽  
Applicable Law ◽  
Market Infrastructure ◽  
The Eu

In this article, the author discusses the phenomenon of stock exchange interconnection and the synergies that it can bring. He investigates the methods and rationales behind various models currently employed such as the Euronext virtual model, the integration between the London Stock Exchange and the Milan Stock Exchange, and the ASEAN model in Asia. Despite the fact that there are many models of interconnection, none of them are truly interconnected in that they share a common trading platform, a single clearing house, and a single central securities depository. Divergence in national law remains a major obstacle to interconnection. This is because, notwithstanding a certain degree of harmonisation achieved in jurisdictions such as the EU, national laws continue to play an important role in regulating financial market infrastructure such as stock exchanges. Therefore, without a clear regime governing jurisdiction and applicable law, true interconnection is unlikely to be achieved.

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