Comments on: KSE posts big losses! –> Boring.. http://www.alphadinar.com/2009/07/07/kse-posts-big-losses-boring/ Finance blog focusing on the Arabian Gulf region (GCC) Wed, 08 Feb 2012 22:41:24 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: keynesian09 http://www.alphadinar.com/2009/07/07/kse-posts-big-losses-boring/comment-page-1/#comment-1634 keynesian09 Wed, 08 Jul 2009 04:51:14 +0000 http://alphadinar.com/?p=1384#comment-1634 Naser: Thanks supporting and quantifying my hatred! I guess the peak in the usage of the word "Green Shoots" coincides with the peak in the market :P Naser:
Thanks supporting and quantifying my hatred! I guess the peak in the usage of the word “Green Shoots” coincides with the peak in the market :P

]]> By: Naser http://www.alphadinar.com/2009/07/07/kse-posts-big-losses-boring/comment-page-1/#comment-1635 Naser Wed, 08 Jul 2009 03:07:57 +0000 http://alphadinar.com/?p=1384#comment-1635 You mentioned how much you hate the term "Green-Shoot" http://www.economist.com/daily/chartgallery/displaystory.cfm?story_id=13522034 The graph attached illustrates how much the word is being used in business articles every week. Its outdated though since it stops at April '09 You mentioned how much you hate the term “Green-Shoot”

http://www.economist.com/daily/chartgallery/displaystory.cfm?story_id=13522034

The graph attached illustrates how much the word is being used in business articles every week. Its outdated though since it stops at April ‘09

]]> By: keynesian09 http://www.alphadinar.com/2009/07/07/kse-posts-big-losses-boring/comment-page-1/#comment-1636 keynesian09 Tue, 07 Jul 2009 14:55:23 +0000 http://alphadinar.com/?p=1384#comment-1636 I wouldn't say our markets blindly follow oil prices, but I firmly believe that we are a small boat in an ocean full of yachts. Further, when a systematic risk emerges in a major country (US unemployment #s etc), this wave ripples all the way to us and significantly affect us. Many people were talking about company-specific reasons for the sell-off in the Kuwaiti market. Although I agree with some, I believe that the sell-off was sparked by systematic rather than company specific reasons. As for oil prices, I guess one has to be fair and recognize that a rally from $40 to $60 turns turns a red fiscal budget to a delighful green one. Since government is a major player in the GCC, this dramatically changes the number of projects awarded to private companies and increases M2. It is crucial to recognize that a change in oil prices from $60 to $80 has a marginally lower impact than the $20 increase from $40 to $60. P.S. welcome back dxb kola! I wouldn’t say our markets blindly follow oil prices, but I firmly believe that we are a small boat in an ocean full of yachts. Further, when a systematic risk emerges in a major country (US unemployment #s etc), this wave ripples all the way to us and significantly affect us.

Many people were talking about company-specific reasons for the sell-off in the Kuwaiti market. Although I agree with some, I believe that the sell-off was sparked by systematic rather than company specific reasons.

As for oil prices, I guess one has to be fair and recognize that a rally from $40 to $60 turns turns a red fiscal budget to a delighful green one. Since government is a major player in the GCC, this dramatically changes the number of projects awarded to private companies and increases M2. It is crucial to recognize that a change in oil prices from $60 to $80 has a marginally lower impact than the $20 increase from $40 to $60.

P.S. welcome back dxb kola!

]]> By: dxb kola http://www.alphadinar.com/2009/07/07/kse-posts-big-losses-boring/comment-page-1/#comment-1637 dxb kola Tue, 07 Jul 2009 09:14:34 +0000 http://alphadinar.com/?p=1384#comment-1637 I do not have the statistical data on hand, but the fact is that in general, WORLD MARKETS have correlated with CRUDE OIL for the better part of the decade. One explanation for that correlation may be the fact that oil majors make up a good chunk of the Western market indexes. So I really cannot say our markets follow oil, although it is generally true that the higher the oil price, the bigger our revenues and budgets. I do not have the statistical data on hand, but the fact is that in general, WORLD MARKETS have correlated with CRUDE OIL for the better part of the decade. One explanation for that correlation may be the fact that oil majors make up a good chunk of the Western market indexes.
So I really cannot say our markets follow oil, although it is generally true that the higher the oil price, the bigger our revenues and budgets.

]]>