Stock markets in Muslim lands rally during Ramadan – study

Ramadan, the holiest month of the Islamic calendar marked with fasting and prayer, is also an uplifting time for stock markets in predominantly Muslim countries, according to a study by the University of New Hampshire.

Stock markets in Oman, Turkey, Kuwait, United Arab Emirates, Qatar, Pakistan, Jordan, Egypt, Morocco, Tunisia, Malaysia, Bahrain, Indonesia and Saudi Arabia generated average returns of 38 percent during the month of Ramadan over the years 1989 through 2007, according to the report compared with their average 4.3 percent returns the rest of the year.

Ahmad Etebari, a professor of finance at the university in Durham, New Hampshire, who was lead researcher on the study, said he was surprised by the finding.

“Fasting is quite an ordeal during those long summer days in the Middle East,” said Etebari, who was born in Iran. “I expected to see the opposite.”

Since Ramadan is determined by a lunar calendar, its starting date varies from year to year. Etebari found that the markets he analyzed performed strongly, regardless of the timing of Ramadan.

Etebari concluded that the rally resulted from greater optimism during Ramadan. “This is behavioral,” Etebari said. “It stems from psychology.”

Observance of Ramadan is expected to start on or about Aug. 11 and finish on or about Sept. 10.

In the Middle East, Dubai’s main index and Abu Dhabi’s benchmark are both down so far this year, while stocks in Indonesia, an officially secular country that has the world’s largest Muslim population, are up about 20 percent.

“The implication of our find for investors is obvious,” Etebari said. “Investors seeking fast profits in the Muslim world should try to profit from the fast.”

Thousands protest conservative Islam in Tunisia

TUNIS — Thousands of Tunisians angered by the increasing prominence of ultra-conservative Islamists in a country only recently freed from dictatorial rule took to the streets in protest Saturday.

An AFP correspondent estimated several thousand activists, professors, artists and other demonstrators flooded the streets of the nation’s capital, including along Bourguiba Avenue, a well-known thoroughfare that became a centre for dissent during protests that led to the ouster of dictator Zine el Abidine Ben Ali a year ago.

Some in Tunisia are angry by the growing influence of radical Islamists, known as Salafists, who have dominated headlines in recent weeks.

Police on Tuesday ended a weeks-long sit-in by Salafists at the university in Manouba, about 25 kilometres (15 miles) from Tunis. The Salafists were angry the university had banned the full-face Muslim veil, or niqab, over security concerns if students were concealed from head to toe.

Journalists have also suffered attacks at Salafist protests.

“We are here to speak out against aggression against journalists, activists and academics,” said Ahmed Nejib Chebbi, founder of the Democratic Progressive Party. “And to tell the government that Tunisians’ hard-fought freedoms must not be compromised.”

Sarah Kalthoum, a retired teacher in her 70s, said she was concerned by what she viewed as regressive ideas from Salafists.

“We spent our lives educating people, and now some want us to go back in time 14 centuries,” she said.

Some in the crowd said they are sensing an encroaching religious conservativism in their everyday lives.

“The grocer told me the other day, ‘I don’t like your jeans,’” said Leila Katech, a retired anaesthesiologist. “I told him I didn’t like his beard.”

Through this religious prism, “Everything becomes tougher: Going to see a gynaecologist, what to wear, how to talk,” Katech said.

Following Ben Ali’s ouster, many Tunisians in October voted for the Islamist Ennahda party, which now dominates the government.

Anxious not to alienate its more radical members, the moderate Islamist party has remained quiet or reacted timidly to some Salafist incidents.

“This government is not complicit, but it is complacent,” Chebbi said.

Tunisia was the first country in the Arab world to initiate mass protests against its autocratic leadership, triggering a wave of protests across the region last year in what became known as the Arab Spring uprisings that led to the ouster of Egypt’s Hosni Mubarak and Libya’s Moamer Kadhafi.