The effect of investor sentiment on stock price indices in stock markets

a recent study of major sporting events on some African stock market indices

Abstract

The study aims to measure the impact of investor sentiment on the stock price indices. To achieve this goal, we take sports (football) as an event that reflects the mood that can affect many investors in their daily lives and affect the stock pricing process. The study sample was limited to the African stock markets indices that participate in the major international sporting events - the African Cup of Nations and the World Cup - during 2008-2015. Namely the teams that qualified for the World Cup: Algeria, Tunisia, Egypt, Cameroon, Nigeria.The results in their entirety concluded that there was no effect on the African stock market indices on the day preceding the sports event. Therefore, the use of the events as a factor affecting investor sentiment and the stock price indices is not achieved in this study.Hence, investor interest after sports events is not reflected in stock price indices, which suggests thatinvestors are rational, and that the excitement caused by the results of sports events is too smallto affect stock market indices