We don’t value rumors very much here at Alpha Dinar, but there was a big rumor that was spread during the weekend which claims that Zain will not be announcing their results and will be suspended from trading. By now we all know that this was just a rumor and Zain announced their 9 months earning today. Even though it wasn’t great, but at least it will still be trading tomorrow. I tried to value the effect of Zain’s suspension on the daily trading value. Below are some interesting charts:
- The bar chart above shows how much Zain contributed in the monthly traded value of the whole market.
- Similar to the previous chart, the one above shows how much Zain contributed to the daily traded value of the whole market.
- This pie chart shows Zain’s value traded contribution to the whole market from year-to-date.
- This shows Zain’s historical contribution. This indicates that the value traded on Zain relative to the market is high as compared to previous years.
I conclude by the data above that if Zain would have been suspended from trading, it will significantly decrease the daily traded volume and will a a critical blow to the market.
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Loading ...Tags: Kuwait, Q3, Zain, Zain Q3, Zain suspension
Zain is currently semi-suspended since the majority of float is frozen. I guess it would have been more interesting if you not only included Zain, but also its closely related companies (MAK Group) in your analysis. This would present a better picture.
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