Essay on The Effect Of Weekend Effect On The Stock Exchange Of Mauritius

Essay on The Effect Of Weekend Effect On The Stock Exchange Of Mauritius

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Weekend effect is also known as the Friday and Monday effect. A phenomenon in stock market in which stock returns on Monday are comparatively lower than those of the immediate preceding Friday. Some theories explain the effect of weekend by releasing bad news on Friday instead of Monday. Stock market is highly volatile market and it affects the all types of information that investors and tradershave. The trading behavior of investor is not same due to the perception of individual all the investor have different opinion on the weekend trading. Trading strategy of individual investor are affected by the wealth and liquidity and particular interest toward the particular stock
Efficient market stated that stock’s return is indifferent in each trading day. But, the weekend effects phenomenon made a different return in each single day in a week or month. This is an abnormal return which can affect investor in deciding investment strategy, portfolio selection, and profit management. This study investigates the day of the week effect, more precisely the Monday effect and the January effect on the Stock Exchange of Mauritius (SEM) in order to get the information whether these anomalies exist or not.
Title of the study “ the impact of weekend effect on Indian stock market” describe that how Friday closing of stock market affect the Monday opening of stock market and how it affects the investors risk and return and try to assess the reason behind the investor strategy on the weekend trading in stock market. This study identifies the factors affecting the investors on weekend and which factors affect the weekend trading and what is the overall impact on volume of the stock market.
1.1Turn-of-the-month (TOM) effect
This effect means that sto...


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1.2 NEED OF STUDY

In Indian stock market investors are lack of awareness about the stock market and they follow the others strategies to invest in stock market. This topic provide the information about how a single day closing of stock market does effect on the next day or how one week trading effect the next week trading in stock market.
This study also elaborate the some figures which help to understand what strategies should a trader adopt and The idea behind the weekend effect is that companies tend to release bad news on Fridays, when the market has the weekend to digest the news and not react as negatively on Monday.
Perception of individual investor are also affect the next day trading individual investor perception might be different at different day investor have follow some belief before the trading on last and first day of the week.





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