share market is an essential part of the global economy. Millions of people
worldwide invest their hard-earned money in the stock market, hoping to get a
good return on their investment. However, the stock market does not operate
24/7. Like any other financial market, it has holidays and trading hours. In
this article, we will explore share market holidays, what they are, why they
exist, and how they impact the stock market.
What are Share Market Holidays?
market holidays are days when the stock market is closed for trading. These
holidays are predetermined by stock exchanges and are based on specific events
or occasions. For example, stock markets in India are closed on Diwali, which
is a significant festival celebrated by Hindus. Similarly, stock markets in the
United States are closed on Independence Day, Thanksgiving Day, and Christmas
market holidays vary by country and region. Some holidays are observed
worldwide, such as New Year’s Day and Christmas Day, while others are specific
to certain countries or regions. For example, the Chinese New Year holiday is
celebrated in China, Hong Kong, and Taiwan, but it is not a holiday in the
United States or Europe.
Why Do Share Market Holidays Exist?
market holidays exist for various reasons. Some holidays are based on cultural
or religious events, while others are due to political or economic reasons.
Here are some common reasons for share market holidays:
Cultural and Religious Events – Share market holidays are
often based on cultural and religious events. These events are significant to
the local population and are observed as national holidays. For example, the
New York Stock Exchange is closed on Good Friday, which is a Christian holiday.
Political Events – Share market holidays can
also be due to political events. For example, in India, the stock market is
closed on the day of the national election to prevent any influence on the
Economic Reasons – Share market holidays can
also be due to economic reasons, such as national holidays that impact the
financial system. For example, in Japan, the stock market is closed on Coming
of Age Day, which is a public holiday celebrating young people reaching
How Do Share Market Holidays Impact
the Stock Market?
market holidays can have a significant impact on the stock market. Here are
some ways how:
Reduced Trading Volumes – On share market holidays,
trading volumes are typically lower than usual. This is because many investors
take the day off, and the market is closed in some regions. This reduced
trading volume can lead to increased volatility and wider bid-ask spreads.
Delayed Settlement – Share market holidays can
also delay the settlement of trades. Settlement is the process by which
securities and funds are transferred between buyers and sellers. If a share
market holiday falls on a settlement day, the settlement is delayed, which can
impact investors’ cash flow.
Changes in Market Sentiment – Share market holidays can
also impact market sentiment. Holidays are often associated with positive or
negative events, and this can influence investors’ mood. For example, a
positive holiday, such as New Year’s Day, can boost investor confidence, while
a negative holiday, such as the anniversary of a major disaster, can dampen
International Markets – Share market holidays in
one country can also impact international markets. For example, if the New York
Stock Exchange is closed for a holiday, it can impact trading volumes in other
stock exchanges worldwide.
Share Market Holidays Around the
mentioned earlier, share market holidays vary by country and region. Here are
some share market holidays observed in different parts of the world:
United States – The New York Stock
Exchange is closed on New Year’s Day, Martin Luther King Jr. Day, Presidents
Day, Good Friday, Memorial Day, Independence Day, Labor Day,
United Kingdom – The London Stock Exchange
is closed on New Year’s Day, Good Friday, Easter Monday, May Day, Spring Bank
Holiday, Summer Bank Holiday, and Christmas Day.
Japan – The Tokyo Stock Exchange is closed
on New Year’s Day, Coming of Age Day, National Foundation Day, Vernal Equinox
Day, Showa Day, Constitution Memorial Day, Greenery Day, Children’s Day, Marine
Day, Mountain Day, Respect for the Aged Day, Autumnal Equinox Day, Health and
Sports Day, Culture Day, and Labor Thanksgiving Day.
China – The Shanghai Stock Exchange is
closed on New Year’s Day, Chinese New Year, Qingming Festival, Labor Day,
Dragon Boat Festival, Mid-Autumn Festival, and National Day.
– The National Stock Exchange of India is closed on Republic Day,
Mahashivratri, Holi, Good Friday, Ambedkar Jayanti, Ram Navami, Eid al-Fitr,
Independence Day, Ganesh Chaturthi, Mahatma Gandhi Jayanti, Dussehra, Diwali,
– The Australian Securities Exchange is closed on New Year’s Day, Australia
Day, Good Friday, Easter Monday, Anzac Day, Queen’s Birthday, Christmas Day,
and Boxing Day.
– The Toronto Stock Exchange is closed on New Year’s Day, Family Day, Good
Friday, Victoria Day, Canada Day, Civic Holiday, Labor Day, Thanksgiving Day,
Christmas Day, and Boxing Day.
market holidays are an essential part of the global financial system. They are
predetermined by stock exchanges and are based on cultural, religious,
political, or economic reasons. Share market holidays can impact the stock
market in various ways, such as reduced trading volumes, delayed settlements,
changes in market sentiment, and international market impact. Understanding
share market holidays is crucial for investors and traders to plan their investment
strategies accordingly. Therefore, it is essential to keep track of share
market holidays in different regions and countries to make informed investment