Analysis of the Impact of Religious and Secular Events on Singaporean Financial Market

This diploma examines the influence of religious and secular holidays on the financial markets in Singapore. By analyzing stock market returns and from 2017 to 2024, the study explores how religious beliefs and practices impact investor behavior and market dynamics. This topic is important as it addresses the intersection of cultural traditions and economic activities, providing insights into how deeply cultural factors can affect financial markets. The research employs regression analysis with dummy variables to investigate the relationship between daily market returns and holiday periods. This methodological approach allows us to examine how specific holidays might influence market performance. Focus is on uncovering patterns in market behavior that could be attributed to cultural and religious events. Despite the expectation that such holidays would significantly impact market returns, the findings suggest that, apart from a minor effect on the days before Christian holidays, neither religious, nor secular holidays have a substantial influence on market dynamics. This outcome highlights the complexity of market behavior and the multitude of factors that can affect financial performance beyond cultural events. While the significant effects were limited, the study provides a valuable foundation for future research. It offers a basis for further exploration into how cultural and religious practices might shape investor behavior and market trends in a diverse society like Singapore.