The holy month of Ramadan, which begins next week, is a period of both quiet contemplation and festivities. The Gulf’s stock markets are likely to experience much more of the former, particularly Saudi Arabia’s Tadawul.
According to research by Jadwa Investment, Saudi Arabia’s Tadawul All Shares Index (Tasi) has dropped an average of 0.8 per cent during the holy month over the past 10 years, compared with an average monthly rise of 1.9 per cent over the remainder of the year.
Unsurprisingly, given that Saudis are either feasting, fasting or sleeping, trading volumes usually reach their annual nadir during Ramadan, which can lead to volatile prices.
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