Has Sentiment Returned to Normal?

14 September 2021  |  Oliver Schutzmann, CEO
Has Sentiment Returned to Normal?

Iridium Quant Lens decodes Earnings Calls language

The Iridium Quant Lens NLP algorithms quantify the language used during earnings calls. We introduced this data science last year (see: Sentiment Quantified) to explore sentiment trends in the immediate aftermath of the pandemic.

In this new report, we revisit this topic to investigate how sentiment trends for GCC listed companies have evolved. For this quarter, we analyzed earnings calls from 1 July to 31 August 2021 (FQ2 2021) for 80 listed companies, representing 73% of the GCC's total market capitalization.

What is management telling us?

Net sentiment, the difference between positive and negative language used during earnings calls, is now back to a level prevailing in 2019, having climbed for five consecutive quarters from its all-time low of 1Q 2020, when the pandemic was at its most disruptive.

The improvement in sentiment was widespread across all GCC countries during the last year, with the most remarkable recovery in Saudi Arabia, followed by the United Arab Emirates, where sentiment now stands at its highest point since 2015. 

The rebound in sentiment coincides with a sharp reduction in the number of mentions of Covid and other health-related words in earnings calls and undoubtedly reflects improving corporate profitability as well as the recovery seen in regional equity markets.

To learn more, please download the report or contact us at ir@iridium.ae