SEASONALITY EFFECTS IN KAZAKHSTAN STOCK EXCHANGE (KASE) INDEX

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Date

2021-02-11

Authors

Mutkarim, Assem
Nursalim, Madina
Orumbayeva, Sara

Journal Title

Journal ISSN

Volume Title

Publisher

Nazarbayev University, Graduate School of Business

Abstract

We investigate whether there exist seasonal anomalies in the Kaza- khstan Stock Exchange (KASE) index. We focus on two well-known ef- fects in capital markets: day-of-the-week and month-of-the-year e ects af- ter controlling macroeconomic variables, crisis periods, and world market movement. Moreover, we construct the KASE Total Return index to con- sider dividends as a potential cause of seasonality in the index returns. The empirical evidence indicates that there are negative Monday and pos- itive Friday e ects in KASE index. However, the negative Monday e ect might result from a decrease in prices on ex-dividend dates. The positive Friday e ect can be explained by investors' sentiments before the holidays. We nd no month-of-the-year e ect in the KASE index. Since there is no prior research on seasonality in the local market, our study reveals notable results and initiates a discussion on this topic.

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Keywords

KAS, SEASONALITY EFFECTS, Type of access: Restricted

Citation

Orumbaeva, Sara et al. (2021). Seasonality effects in Kazakhstan stock exchange (kase) index. Nazarbayev University, Graduate School of Business