Open Access Open Access  Restricted Access Subscription Access
Cover Image

Good Day Sunshine: Stock Returns and Weather, Evidence from Pakistan Stock Exchange (PSX)

Haroon Iqbal, Dr. Muhammad Mudasar Ghafoor, Tabassum Riaz, Adeel Nasir


This research paper study the impact of weather based shocks on PSE100 Index by using event study methodology. By using the data of PSE100 Index from Jan 2013 to July 2016 on daily bases, this paper concluded that sunshine and clouds is insignificant to the returns of PSE100 index and rain has significant impact to PSE market returns .This study describes by controlling the impact of rain on mood investor make rational decision making. 


Sunshine Hours, Clouds, Rain, Pakistan Stock Returns

Full Text:



Veit, D., Clemons, E., Benlian, A., Buxmann, P., Hess, T., Kundisch, D., ... & Spann, M. (2014). Business models. Business & Information Systems Engineering, 6(1), 45-53.

Saunders, E. M. (1993). Stock prices and Wall Street weather. The American Economic Review, 83(5), 1337-1345.

Hirshleifer, D., & Shumway, T. (2003). Good day sunshine: Stock returns and the weather. The Journal of Finance, 58(3), 1009-1032.

Hasan, S. A., & Subhani, M. I. (2011). Which Matters the Most for e Trading Index?(Law and Order or Weather Conditions).

Goetzmann, W. N., & Zhu, N. (2005). Rain or shine: where is the weather effect?. European Financial Management, 11(5), 559-578.

Pardo, A., & Valor, E. (2003). Spanish stock returns: Rational or weather influence. European Financial Management, 9(2), 78-84.

Krivelyova, A., & Robotti, C. (2003). Playing the field: Geomagnetic storms and international stock markets (No. 2003-5a). Working paper, Federal Reserve Bank of Atlanta.

Dowling, M., & Lucey, B. M. (2005). Weather, biorhythms, beliefs and stock returns—some preliminary Irish evidence. International Review of Financial Analysis, 14(3), 337-355.

Worthington, A. C. (2006). Whether the weather: A comprehensive assessment of climate effects in the Australian stock market.

Yoon, S. M., & Kang, S. H. (2009). Weather effects on returns: Evidence from the Korean stock market. Physica A: Statistical Mechanics and its Applications, 388(5), 682-690.

Symeonidis, L., Daskalakis, G., & Markellos, R. N. (2010). Does the weather affect stock market volatility?. Finance Research Letters, 7(4), 214-223.

Kang, S. H., Jiang, Z., & Yoon, S. M. (2009). Weather effects on the returns and volatility of Hong Kong and Shenzhen stock markets. Korea Research Foundation.

Akhtari, M. (2011). Reassessment of the weather effect: Stock prices and wall street weather. Undergraduate Economic Review, 7(1), 19.

Kaustia, M., & Rantapuska, E. (2016). Does mood affect trading behavior?. Journal of Financial Markets, 29, 1-26.

Goetzmann, W. N., Kim, D., Kumar, A., & Wang, Q. (2014). Weather-induced mood, institutional investors, and stock returns. Review of Financial Studies, hhu063.

Odegaard, B. A. (2014). Oslo Stock Exchange and the Weather.

Dong, M., & Tremblay, A. (2015). Does the Weather Influence Global Stock Returns?.

Xu, Z. (2014). Are stock market prices related to the weather effect? Empirical Evidence from New York City.


  • There are currently no refbacks.