Ramadan Effect On Stock Markets

Tan, Ömer Faruk; Özlem, Şirin

doi:10.23892/jrb.2018.23

Cited by 3 publications

(8 citation statements)

References 9 publications

(15 reference statements)

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“…This result is partially consistent with Ali et al (2017), Tan (2017) and Mustafa (2011), who concluded that the effect of working days after Eid Al-fittir is positive and significant on stock exchange indices. While our result contradicts with Tan and Özlem (2018) and Al-Hajieh et al (2011), who found that the QSE recorded the highest ratio of returns during Ramadan days.…”

Section: Results Analysis and Discussioncontrasting

confidence: 99%

“…This result is consistent with Tan and Özlem (2018), who proved a positive and significant effect for the second and last 10 days of Ramadan on ASE. Al-Hajieh et al (2011) and Tauraitis and Pukartas (2009) found that the Ramadan effect has a positive effect on the ASE.…”

Section: Results Analysis and Discussionsupporting

confidence: 92%

“…Stock market activity declines in Ramadan’s first days and increases in the last days, The first 10 days showed a negative effect on stock return (Tan, 2017). The explanation for this result is that Muslims, in the early days of Ramadan, need to adapt to fasting, which may outshine the positive emotions aroused by the holy period (Tan and Özlem, 2018). Moreover, the second 10 days have the most negative return compared with the first ones (Al-Hajieh et al , 2011).…”

Section: Literature Reviewmentioning

confidence: 99%

“…The last 10 days of Ramadan are the holiest part (Wasiuzzaman and Al-Musehel, 2018; Munusamy, 2019) because Laylat Al-Qadr is included in the past 10 days of Ramadan. Laylat Al-Qadr is considered as the most important day of Ramadan due to the revelation of the Qur’an to the Prophet Mohammad (Tan and Özlem, 2018). In addition, Eid Al-Fittir is a Muslim three-day festivity that marks the end of Ramadan and it is the time to give charities to those who are in need and to celebrate the completion of Ramadan with family and friends.…”

Section: Literature Reviewmentioning

confidence: 99%

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Ramadan effect and indices movement estimation: a case study from eight Arab countries

Najjar

Assous

Al-Najjar

et al. 2022

JIMA

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Purpose This study aims to investigate the Ramadan effect anomaly on the stock markets’ indices and estimate the movement of these indices in the light of the phenomenon. Design/methodology/approach Stock market indices are used as financial indicators to show the Ramadan effect. To validate this effect, eight Arab countries, which comprises Jordan, Saudi Arabia, Oman, Qatar, United Arab Emirates, Bahrain, Kuwait and Egypt, are adopted. A linear regression with R2, error, F-value and p-value is considered to analyze and understand the effect of Ramadan on the aforementioned Arab countries. Findings Results found that Ramadan has a strong effect on estimating and predicting the performance of stock market indices in all studied Arab countries, except Kuwait. Results found that the majority of the Ramadan effect occurred after the second 10 days of Ramadan, where the direction of stock indices is opposite of Ramadan variables in all aforementioned cases. Originality/value This study is considered as an enrichment of the existing literature review with regard to the Ramadan effect. The study presents a new methodology that can be followed to improve the predictions of stock market indices by using a weight least square method with linear regression. This study presents the most affected periods of time that could decrease or increase the stock prices. Finally, the study proves the capability of the weight least square method in building a predictive model that takes the date into consideration in predicting stock market indices.

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Section: Results Analysis and Discussioncontrasting

confidence: 99%

Section: Results Analysis and Discussionsupporting

confidence: 92%

Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

See 2 more Smart Citations

Ramadan effect and indices movement estimation: a case study from eight Arab countries

Najjar

Assous

Al-Najjar

et al. 2022

JIMA

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“…This is thought to make people's daily life patterns, especially Muslims, change during the month of Ramadhan and other months. Every devout Muslim will carry out more and more quality religious activities such as increasing sunnah prayers, i'tikaf, reading the Al-Quran, infaq, and shodaqoh (Tan & Ozlem 2018). However, just before Idul Fitri, people will buy more needs than usual (zakat, clothes, food, homecoming costs, etc.).…”

Section: Introductionmentioning

confidence: 99%

Halal Development: Trends, Opportunities and Challenges

Pratikto¹,

Taufiq²,

Voak³

et al. 2021

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The increasing demand for halal products including goods and services every year, especially for food and beverages, has resulted in a growing need for products with Halal guarantees. Along with the increasing trend of demand globally, it has resulted in an increase in producers of halal food and beverages in both Muslim and non-Muslim countries. The growth in demand for halal products increased significantly in Asia, Africa and Europe. This has also resulted in an increase in demand from consumers of halal products so that producers in producing food and beverage products must comply with the provisions of Islamic law.In addition, not only for food and beverage products but also the demand for halal tourism is also increasing. Indonesia is one of the largest Muslim countries in the world. However, there are still many Muslim consumer actors and Muslim producer actors who do not yet have an awareness of the importance of complying with the provisions of Islamic law in consuming and producing goods and services. There are still many restaurants and hotels that serve food and drinks that are not certified halal. There are still many food, medicinal and cosmetic products that are not halal certified. But now many secular countries such as France, Canada, Australia, the United States, Britain are also halal certified with the aim of meeting the Muslim demand for halal products for food and beverage, including for halal tourism.

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