Does Boxing Day Impact Stock Markets?

December 27, 2020 12:55 AM EST | By Kunal Sawhney
 Does Boxing Day Impact Stock Markets?

Summary

  • Reports show that holidays, and even seasonal changes, have an effect on the fluctuation of stock prices.
  • Studies have found that stock prices have a tendency of often rising ahead of long holidays, which would include Christmas and Boxing Day in North America.
  • Stock markets recorded a significant surge on Boxing Day in 2018.

Stock markets in North America, including Canada’s Toronto Stock Exchange, are poised to remain closed on Boxing Day. However, the official holiday is still expected to have an impact on the bourses.

Reports show that holidays, and even seasonal changes, have an effect on the fluctuation of stock prices. Holidays like Thanksgiving and Black Friday, which many major countries observed in November, also have a record of impacting the stock markets.

So let’s see now how Boxing Day can influence stock exchanges.

What Is Boxing Day?


Unlike what the name may lead novices to think, Boxing Day has no relations to with the sport of boxing. It, however, is often linked to the practice of ‘unboxing’ presents received during the holiday season.

Boxing Day technically falls on the day after Christmas, i.e., December 26. However, reports say that when the 26th falls on a weekend, the holiday is officially celebrated on the following Monday. This is what’s happening this year.

©Kalkine Group Image

 

How Does Boxing Day Impact Stock Markets?


Studies have found that stock prices have a tendency of often rising ahead of long holidays, which would include Christmas and Boxing Day in North America. This is likely to be driven by high spirits during the holidays among investors, as well as the trend of consumers tending to spend more over the holiday season which can cause a spike in retail stocks.

The S&P/TSX Composite Index, currently up nearly three per cent year-to-date, saw a marginal difference in value on December 27 last year, a day after Boxing Day.

Stock markets recorded a significant surge on Boxing Day in 2018. While the S&P/TSX Composite Index climbed by nearly three per cent on December 27, the Dow Jones index jumped nearly five per cent on Boxing Day.

In 2004, stock markets around the world registered a grave impact on Boxing Day, but that was less about the holiday and more in the wake of the disastrous tsunami that wreaked havoc in Indonesia.

What Could 2020 Boxing Day’s Impact Look Like?


With the number of COVID-19 cases rising in Canada, Ontario going under full lockdown, a new mutant strain of the coronavirus creeping up on humanity and vaccine campaigns making a progress all at the same time, Boxing Day and the holiday season in general is likely to be a bittersweet experience altogether. As to what impact the festivity could have on the stock markets could only be gauged in due time.


Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Incorporated (Kalkine Media), Business Number: 720744275BC0001 and is available for personal and non-commercial use only. The advice given by Kalkine Media through its Content is general information only and it does not take into account the user’s personal investment objectives, financial situation and specific needs. Users should make their own enquiries about any investment and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media is not registered as an investment adviser in Canada under either the provincial or territorial Securities Acts. Some of the Content on this website may be sponsored/non-sponsored, as applicable, however, on the date of publication of any such Content, none of the employees and/or associates of Kalkine Media hold positions in any of the stocks covered by Kalkine Media through its Content. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used in the Content are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used in the Content unless stated otherwise. The images/music that may be used in the Content are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.


Sponsored Articles


Investing Ideas

Previous Next
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.