Do Cloudy Days Affect Stock Exchange Returns: Evidence from Istanbul Stock Exchange

Ekrem Tufan

Anadolu University, Open Education Faculty
A.O.F. Burosu Canakkale, Turkey
etufan@yahoo.com

Bahattin Hamarat

College Of Tourism and Hotel Management
Onsekiz Mart University, Çanakkale, Turkey
etufan@yahoo.com

Abstract

Market anomalies in stock markets should be related to investors' trading strategies, which are based on their psychologies along with other factors. The fact that some weather variables affect investor's performance and mood can also affect market prices substantially. This paper examines the relation between cloudy days at the Istanbul Stock Exchange 100 (ISE100) Index returns and the weak form efficiency for ISE with a different approach. It has been found that cloudy days are not the cause of or have no relationship with ISE 100 Index returns and also that there exists an evidence of weak form efficiency for Turkish stock market.