Global financial crisis

Parallels between COVID-19 and global financial crisis

Markets worldwide have experienced unprecedented volatility in the wake of the coronavirus outbreak. Though the mortality rates of those affected is much lower than that of Severe Acute Respiratory Syndrome (SARS) or the Middle East Respiratory Syndrome (MERS), Coronavirus disease – 2019 (COVID-19) being highly contagious has spread to over 190 countries and resulted in over thirty thousand deaths, majorly in Italy, Spain and China . Considering the severity of the outbreak, the World Health Organization (WHO) has declared it...

Why is Liquidity important? Some Research Snippets

Liquidity is at the backbone of any market development and GCC stock markets are no exception. Strong oil price backed wealth effect coupled with retail nature of the market triggering speculative activity contributed to very robust liquidity levels in the past, especially before the financial crisis. Liquidity is generally measured as total value traded and is expressed as a % of total market capitalization to arrive at the velocity. A high velocity may indicate that liquidity is running ahead of...