The Collapse of the Algerian Stock Exchange and Investment Opportunities (Research Note)

Mahfooth Jabbar, Adeelah Muraimet

Abstract


Some academicians and officials at Algiers Stock Exchange assert that bond market should be developed in order to surmount the deep crisis which the stock market has been facing for the past few years, and which may lead to its closing down. They suggest that this crash is due to the increasing demand for bonds issued by Sonatrach. In this context, our study shows that there is no correlation between the two kinds of financial products, i.e. stocks and bonds listed on Algiers Exchange. It also proves that bonds did not affect, in any way, the stock market, and the prices and volumes exchanged of those financial instruments are completely independent.  So what is the real reason behind this crash? This is what this study tries to investigate

Keywords


Equities’ Market, Bonds’ Market, Crash of Financial Markets, Investment Alternatives, Algerian Stock Market

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