Modeling linkages between minimum and maximum temperatures and Qatar sectoral markets
摘要
This study explores the effects of minimum (MINTEMP) and maximum (MAXTEMP) temperatures on Qatar’s sectoral stock markets from December 14, 2019, to August 30, 2024, employing a quantile-on-quantile (QoQ) approach. The analysis reveals that MINTEMP positively influences sectors such as banking, construction and materials, financial services, and telecommunications in cooler climatic conditions, fostering operational stability and enhancing market activity. In contrast, sectors like real estate, healthcare, industrials, and industrial goods and services perform better under lower MINTEMP, but encounter greater operational challenges, reduced productivity, and increased systemic risks during high-temperature periods. The energy, utilities, and basic materials sectors thrive in moderate temperature conditions, yet remain vulnerable to extreme temperatures, experiencing operational disruptions and supply chain inefficiencies. MAXTEMP, on the other hand, has a more varied impact across sectors. Banking, construction, and materials sectors face elevated operational costs and delays during extreme heat events, while energy, utilities, and basic materials sectors demonstrate relative resilience, although their maintenance demands rise under high temperatures. These findings highlight the critical need for adaptive strategies by stakeholders including policymakers, businesses, and investors to effectively manage and mitigate the risks associated with climate change.