1. Seasonality of stock markets returns
Repersentewd by
Jaza el dossari ( )
Roba Al-gothmi( )
Eman Al-shanqaiti( )
Mada Al-enizi ( )

2. Introduction
Seasonality refers to regular and repetitive change in a time series which occurs periodically over an extent of less than a year. The main reasons of seasonality in time series data.. is the variation in climate and customs and bandtradition affects economic variables.

3. The most common of these are monthly patterns; definite months give better returns as compared to others i.e. the month of the year effect. Similarly, some days of the week give lower returns as compared to other trading days i.e. days of the week effect.

4. Seasonality Reasons
-funds try to evolve year-end results by pushing stock prices higher. -Attention payments in December, because year-end debenture coupon payments flow partially into the stock market. -The holiday effect (Christmas, year-end). -Positive Moods let investors to make investment decisions by using the time-off.

5. Examples of seasonality
-Rise of Gasoline consumption in summer due to increased auto travel.
-Rise of International airline prices in summer due to increased tourism.
-Increase of Electricity consumption in summer due to air conditioning.
-Decrease of Construction activity and jobs in winter in the Midwest.
-Increase of Consumer spending in November and December due to holiday shopping.

6. Seasonality, is basically depending on historical data
Seasonality, is basically depending on historical data. A seasonal pattern such as the fall rally is achieved by analyzing a vast number of years. But every year is not the same. In some years the rally is highly pronounced, in other years lower, and in a third year the market falls. Only after analyzing a number of years does a seasonal pattern emerge.

7. Other factors affecting price development, thus the course of individual years is different and sometimes completely contrary to the seasonal trend. Some of these factors psychological, fundamental, and political factors.

8. Seasonality in statistics
Seasonality is one of largest frequently used statistical patterns to develop the accuracy of request forecasts. Each part of the year has a specific reason for its seasonality. Also every market has its specific reasons for seasonal tendency. For example, retail sales behave to peak for the Christmas season and then decline after the holidays.

9. Seasonality and the Saudi stock market
There is seasonality in the stock returns according to the Hijri calendar in month as in Ramadan and day as in Eid-El-Fitar and Eid-El-Adha. In Ramadan , people butchered animals to celebrate by Eid-El-Adha. That increases the consumption of people, which reduces the purchasing capacity hence saving decreases. Due to those changes in these months as compared to other month, it is interesting to discuss the behavior of trading activity under those situations. Although the effect on company earnings can be huge, the seasonal deformations appear to be factored into share prices.

10. Illustration of seasonal time-series
The seasonal component of a time series is defined as the internal variation that is duplicated constantly. If the seasonal factors increased from year to year, it will be too large, and then the seasonal factors will introduce deformation into the model.

11. Fig 1 Time-series example

12. Tadawul (Saudi Arabia stock exchange)
in the mid 1930’s
At 1975.
in the 1970’s
the early 1980’s
In 1984
in July 2003

13. Fig 2.TASI Tadawul All Share Index.

14. Literature Review (1991) Zeimba (1976) Michael and William
(1987) Ariel
(1991) Zeimba

15. Saudi Electricity Company (SEC)
Company Activities
Generate, transmit and distribute electric power in the Kingdom of Saudi Arabia either by
Itself
or through its wholly or partially owned subsidiaries
Company History
Establishment Decree/16 dated 6/9/1420(H)
Minister of Commerce resolution No dated 30/12/1420 for
Profit chart
Losses in the fourth and first quarters
Tend into earning in the second quarter and give its highest profits for the year in the third quarter.

16. CONCLUSION
The concept of seasonality is much reported and documented in the stock market returns. It is complex and has wide ranging effect on the economy of countries. Thus we find a push from companies to conclude deals and projects ahead of the summer slowdown; the second quarter is generally the peak time for private sector activity in the Kingdom. Profits in eight of the 15 sectors peaked in the second quarter. It is the quarter in which most projects are recompensed and the prime season for conference and fairs.