January Effect on Karachi and Jakarta Stock Exchange

January Effect on Karachi and Jakarta Stock Exchange

Contents

1.        Introduction:        

1.1        The January Barometer in the Popular Press        

1.2        Scope of the Study:        

1.3        Objectives of the Study:        

1.4 _        Problem Statement:        

1.5        Limitation:        

2        Literature Review        

3        Methodology        

3.5        Dependent Variable:        

3.2        Independent Variable:        

3.3        Data Sources:        

3.4        Sample Selection:        

3.5        Hypothesis:        

4        Analysis        

4.1         Discussion of the result:        

4.1.1 _        For Karachi Stock Exchange        

4.1.2        For Jakarta Stock Exchange:        

5.        Conclusion        

1. Introduction:

Several research papers, example Hirsch [1986] and Hensel and Ziemba (1995) Brown and Luo (2006) Copper, and Marshall and Visaltanachoti (2008) have shown the benefits of anomalous return behavior of the January Barometer Effect and also called it January Effect. It was the Hirsch (1974) who described the January Barometer “as the stock market goes in January, so goes the rest of the year”. It means that if the stocks are going well in the month of the January then it will have automatically positive impact on the rest of the months and will have high return and if the stocks in the January are not fine then it will have negative impact on the rest of the year.