The Islamic calendar has several impacts on trading activity and stock returns in the Karachi Stock Exchange (KSE). During the holy month of Ramadan, trading hours are reduced as Muslims avoid speculation and gambling. On Eid-ul-Fitar, food and clothing prices rise as people celebrate, decreasing stock market volatility. After Eid-ul-Azha, consumption increases and savings decrease as animals are slaughtered to follow tradition. The mourning month of Aashoora is also observed, which impacts trading.

1. The Islamic
Calendar Effect
in Karachi Stock
Market

2. Karachi Stock Exchange
KSE provides a liquid and efficient digitized
marketplace where investors meet directly
to buy and sell listed company’s common
stock and other securities. For more then
60 years KSE has facilitated capital
formation and offers companies and
investors an efficient and transparent
securities market.

3. Definitions
Calendar:
• A chart or series of pages showing the days, weeks,
and months of a particular year, or giving particular
seasonal information.
• Calendar anomalies are one of the features of
financial market, which is against the efficient
market hypothesis.

4. Some Types of calendars
Different countries and societies also follow their own
calendar, which are based on religion in addition to
Gregorian calendar.
For example
• Jewish society follow Hebrew calendar, which
strictly based on lunar-solar,
• the Christian society follows Gregorian calendar,
which based on solar,
• Hindu and Chinese follow their own calendar.

6. Muslim calendar
• Muslim society follows the Islamic calendar, which is
based on a lunar calendar, referred to as the Hijri
calendar.
• This calendar contains twelve months that start with
the appearance of new moon.
• The average days in a lunar month contain only
29.53 days that is why Islamic year is approximately
eleven days shorter than the Gregorian year.

7. Different Impacts on KSE
Above mentioned religious calendars, there are
religious days and month, which these societies
observed e.g.
• Christian society celebrated X-miss days,
• Deepvali by Hindu society
• Vesk day by Buddhist.

8. Muslim calendar
Like above religious days Muslim societies also
observed and celebrated the religious month like as
Ramdhan and Aashoora and day like Eid-ul-Fitar
and Eid-ul-Azha.
Different impacts of Muslim calendar on KSE
they are Given

9. Ramadan
• Hotels and restaurants are closed in
day times. In addition this month is
motivated towards the religious
activity.
• As a result Muslims avoid to sin and
wrongdoing such as speculation and
gambling which is obviously the
mettle of stock exchange.
• The working hours of the offices and
business activity reduced.

10. Eid-ul-Fitar
• After the end of the Ramadan,
Muslim society celebrated Eid-ul-
Fitar.
• People purchase new cloths, and
decorated their houses.
• It is observed that food prices, prices
of cloths and prices of other
commodities increase during this
month.
• The behavior of the people during this
month ultimately impact on financial
market trading activity. It decreases
the volatility of stock market in
volume and stock returns in Pakistan

11. Eid-ul Azha
• After celebrated Eid-ul-Fitar, the prices become normal.
In month of Zil-Hajj, people slaughtered the animal like
as cow, goat, camels’ etc, to follow the Sunnat-e-Ibrahim.
• It increases the consumption of people, which reduces
the purchasing power hence saving decreases.
• Aashoora come after Eid-ul Azha, which observed as
mourning month.

12. Aashoora
• Aashoora come after Eid-ul Azha, which observed as
mourning month.
• It is a religious festival of remembrance in Islam but it is
celebrated for different reasons among Sunni and Shi’a
Muslims.
• Sunni Muslims fast on this day and celebrate by
reflecting, showing respect and gratitude.

13. THANK YOU