Article Information

Title: A Seasonality in the Pakistani Equity Market: The Ramadhan Effect

Authors: Fazal Hussain

Journal: The Pakistan Development Review

HEC Recognition History
Category From To
Y 2023-07-01 2024-09-30
Y 2022-07-01 2023-06-30
Y 2021-07-01 2022-06-30
X 2020-07-01 2021-06-30
Y 1900-01-01 2005-06-30

Publisher: Pakistan Institute of Development Economics

Country: Pakistan

Year: 1998

Volume: 37

Issue: 1

Language: English

DOI: 10.30541/v37i1pp.77-81

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Abstract

This paper attempts to explore a seasonal pattern, the Ramadhan effect, in the Pakistani equity market. Ramadhan, the holy month of fasting, is expected to affect the behaviour of stock market in Pakistan where the environment in Ramadhan is different from other months as people devote more time to perform religious rituals and the general economic activity slows down. The effects of Ramadhan on mean return and stock returns volatility are examined by including a dummy variable in regressions and GARCH models respectively. The analysis indicates a significant decline in stock returns volatility in this month although the mean return indicates no significant change.

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