In the stock market, calendar anomalies involving day of the week, weekend and January effects have gained considerable significance and interest among investors. Recently, studies have been conducted in an attempt to examine the association and effect that the day of the week phenomenon has on large equity bourses like London stock exchange. Essentially, evidence reveals that low stock returns have been obtained during the first day of the week as opposed to the rest of the days. In fact, the application of efficient market theory has different impacts on the returns in the stock market because it has uniform daily returns.in essence, the author of the article analyses the impact of the day- of- the- week in Bahraini stock exchange market.
Lastly, the author concludes that Bahrain has a weak stock market that is less efficient because of little attention attached to the day of the week effect. In essence, little public attention of the anomaly is a sign that it is in the initial stages, and inefficiencies that are more adverse may arise in Bahrain’s life cycle. The author recommends that investors shift their cash into deposits in banks to escape negative effects of the day of the week anomaly. Objectively, the author recommends further research on the days of the week anomaly through a stochastic model that he considers as satisfactory.
Works Cited
Ahmad M., Gharaibeh O. , and Fatima I. Hammadi. "The Day of the Week Anomaly in Bahrain's Stock Market." 9.2 (2013): 1-11. Web.
