The Effects of Macroeconomic Factors on the Performance of Stock Market in Sri Lanka

2018 ◽  
Vol 3 (6) ◽  
pp. 33-41 ◽  
Author(s):  
Shohani Upeksha Badullahewage
Keyword(s):  
Sri Lanka ◽  
Stock Market ◽  
Exchange Rates ◽  
Interest Rates ◽  
Stock Exchange ◽  
Market Performance ◽  
Vital Role ◽  
Sri Lankan ◽  
Macroeconomic Factors ◽  
Stock Market Performance

The main objective of this research is to analyze the vital impact of macroeconomic factors on the stock market performance in Sri Lanka. All the factors which have a direct impact on the working of the emerging stock market have hereby studied. The relationship between the pivotal factors such as inflation, gross domestic product, interest rates, and exchange rates has been properly conducted with the assistance of the indexes. The results of the analysis revealed that all these factors have an inseparable impact over the performance of the stock market and Sri Lankan stock market performance has eventually over gone through many ups and downs because of them as well. It has been revealed that among all the factors that have been discussed, inflation and exchange rates have comparatively higher effects on the stock market performance. It shows a fluctuation because of the unpredictable nature of these factors. Colombo Stock Exchange has seen a tremendous change in its performance over a period for which these factors have played a prominent as well as a vital role in it its functioning.

scholarly journals Economic Forces and the Stock Market Performance in Developing Countries: Evidence From Sudan

2020 ◽  
Vol 11 (4) ◽  
pp. 130
Author(s):  
Nawal Hussein Abbas Elhussein ◽  
Elzibeer Fath Elrahman Hamed Warag
Keyword(s):  
Stock Market ◽  
Trading Volume ◽  
Price Index ◽  
Cost Of Capital ◽  
Stock Exchange ◽  
Market Performance ◽  
Macroeconomic Factors ◽  
Long Run ◽  
Stock Market Performance ◽  
Short Run

This paper is an attempt to empirically investigate the determinants of the stock market performance in Sudan. It aims at identifying the short and long run relationships between the Khartoum Stock Exchange all- share price index (KSI) as an indicator of market performance and some selected micro and macro-economic factors. The inflation rate, cost of capital, foreign exchange rate, broad money supply, and crude oil price are chosen as proxies for macroeconomic factors. The market oriented indicators used include market capitalization, market trading system, and market trading volume. The study covers the period 2003-2017. The paper employs the Multivariate Time Series Regression Analysis to estimate the short run relationship between the selected independent variables and the KSE price index. Soren Johansen’s Cointegration Test and Vector Error Correction Model (VECM) have been employed to identify the long run equilibrium relationship among the variables. To estimate the causal relationship between the selected variables Toda-Yamamoto (T-Y) Granger Causality Test has been utilized. The study documents that the Khartoum Stock Exchange performance is significantly affected both by micro and macroeconomic factors. In the long run, all the independent variables with the exception of the cost of capital, have a significant positive relationship with KSI. However, in the short run the determinants of the stock market performance are market capitalization, market trading volume, money Supply, and cost of capital.

scholarly journals Does CEO Turnover Affect Stock Market Performance through Company Performance in Indonesian Companies?

2019 ◽  
Vol 4 (1) ◽  
pp. 15
Author(s):  
Nera Marinda Machdar
Keyword(s):  
Stock Market ◽  
Stock Exchange ◽  
Theoretical Perspective ◽  
Market Performance ◽  
Ceo Turnover ◽  
Company Performance ◽  
Manufacturing Companies ◽  
Age Related ◽  
Stock Market Performance ◽  
Positive Effect

This study analyzes whether CEO turnover affects stock market performance through company performance in Indonesian companies. Specifically, this study examines: (1) Does the CEO turnover affect the stock market performance? (2) Does the CEO turnover affect the company performance and (3) Does the CEO turnover affect the stock market performance through the company performance? This study does not test the CEO turnover due to death, forced resignation, voluntary departures, and age-related retirement considering that almost all companies in Indonesia are family companies. This study uses the manufacturing companies listed on the Indonesia Stock Exchange as an analysis unit with the study period during 2010-2015. The finding of this study concludes that (1) the CEO turnover has a positive effect on the stock market performance, (2) the CEO turnover has a positive effect on the company performance, and (3) the CEO turnover does not affect the stock market performance through the company performance. This study has an implication from a theoretical perspective, i.e. the CEO turnover has a positive effect on the stock market performance and the company performance. However, CEO turnover does not affect the stock market performance through company performance. Then, the company performance is not an intervening variable of the effect of the CEO turnover on the stock market performance.

scholarly journals STUDY OF CONNECTION BETWEEN STOCK MARKET AND ECONOMIC PERFORMANCE IN MALAYSIAN CONTEXT

2020 ◽  
Vol 2 (2) ◽  
pp. 82-90
Author(s):  
Ngee Derk
Keyword(s):  
Economic Growth ◽  
Stock Market ◽  
Interest Rates ◽  
Stock Exchange ◽  
Exchange Market ◽  
Causality Test ◽  
Vector Autoregressive ◽  
Real Gdp ◽  
Meaningful Relationship ◽  
Stock Market Performance

The focus of the study is to test the stock market performance influence on the economic growth for time series for the period of 2002 to 2018 on quarterly basis. In this study, the performance measures included standard deviation which is measure of volatility, total value traded shared as measure of liquidity, turnover ratio as measure of liquidity, and stock market capitalization ratio as a measure of the size. The focus of the study is the Malaysian stock exchange market. The study utilized real GDP as an indicator of economic growth. The exchange rate and the interest rates are used as control variables. The study used Vector Autoregressive model and the Granger causality test are utilized for finding the directional relationship between the stock market and economic growth connection. Results states that variables are statistically insignificant and there is no meaningful relationship found.

scholarly journals Assessing the Nexus Between Stock Market Performance and Covid-19: Evidence from Global Perspective

2021 ◽  
Author(s):  
Yousaf Latif ◽  
Ge Shunqi ◽  
Shahid Bashir ◽  
wasim Iqbal ◽  
Salman Ali ◽  
...  
Keyword(s):  
Stock Market ◽  
Stock Exchange ◽  
Market Performance ◽  
Global Perspective ◽  
Policy Implications ◽  
Market Volatility ◽  
Gdp Growth ◽  
Stock Market Volatility ◽  
Public Attention ◽  
Stock Market Performance

Abstract This study described an empirical link between COVID-19 fear and stock market volatility. Studying COVID-19 fear with stock market volatility is crucial for planning adequate portfolio diversification in international financial markets. The study used AR (1) – GARCH (1,1) to measure stock market volatility associated with the COVID-19 pandemic. Our findings suggest that COVID-19 fear is the ultimate cause driving public attention and is a stock market volatility. The results demonstrate that stock market performance and GDP growth decreased significantly through average increases during the pandemic. Further, a 1% increase in COVID-19 cases the stock return and GDP decrease with a 0.8%, 0.56%, respectively. However, GDP growth demonstrated a slight movement with stock exchange. Moreover, public attention to the attitude of buying or selling was highly dependent on the COVID-19 pandemic reported cases index, death index, and global fear index. Consequently, investment in the gold market, rather than in the stock market, is recommended. The study also suggests policy implications for key stakeholders.

scholarly journals INVESTIGATING THE NEXUS BETWEEN MUTUAL FUND RETURN AND STOCK MARKET PERFORMANCE – EVIDENCE FROM PAKISTAN STOCK EXCHANGE

2018 ◽  
Vol 14 (1) ◽  
pp. 23-38
Author(s):  
Muhammad Tariq ◽  
Keyword(s):  
Panel Data ◽  
Stock Market ◽  
Stock Returns ◽  
Mutual Fund ◽  
Stock Exchange ◽  
Panel Data Analysis ◽  
Macroeconomic Factors ◽  
Stock Market Returns ◽  
Stock Market Performance ◽  
Equity Funds

This study is aimed to determine the nexus between mutual fund returns and stock market returns in Pakistan. This study adds contribution by testing the causa-effect relation of mutual fund returns and macroeconomic factors on the stock returns in Pakistan. This study is based on Panel data for 10 AMCs operating in Pakistan and macroeconomic factors for the period of 2007 to 2016. The hypothesis testing is based on panel data analysis, therefore the panel regression is applied via PLS, FEM and REM comparison.  The study concludes that the there is significant effect of Equity Funds Returns on Stock Return. On the other hand, debt funds return and T-bills have the insignificant impact on Stocks Return. This study recommends influential findings for the policy makers such as equity funds have positive effect on the stock market.

scholarly journals Price-Earnings Multiple as an Investment Assessment Tool in Analyzing Stock Market Performance of Selected Universal Banks in the Philippines

2019 ◽  
Vol 8 (4) ◽  
pp. 17-33
Author(s):  
Antonio Jaramillo Dayag ◽  
Fernando Trinidad
Keyword(s):  
Growth Rate ◽  
Stock Market ◽  
Assessment Tool ◽  
Stock Exchange ◽  
Market Performance ◽  
Developed Countries ◽  
The Philippines ◽  
Stock Market Index ◽  
Independent Variables ◽  
Stock Market Performance

Price-Earning Ratio or P/E Multiple is a widely used, straightforward investment assessment tool in developed countries. However, the method has not been utilized as much in stock market performance analysis in developing countries such as the Philippines. Using the top ten universal banks in the country, this paper utilized Price-Earnings Ratio [PER] as valuation tool and dependent variable, and sought to determine its value drivers. Used as independent variables are macroeconomic variables gross domestic product [GDP] growth rate, inflation rate, annual interest rate; stock market index Philippine Stock Exchange [PSEi]; and firm-specific variables return on equity [ROE], growth rate of ROE, growth rate of earnings per share, dividend payout ratio [DPO, growth rate of income, and price-book value [PBV] ratio. Results showed that among the independent variables, ROE, PBV ratio, and PSE index are statistically significant. The model’s (R2) is 63.7%, which is a fairly good fit.  

Study on Indian Stock Market Performance Based on Commodities

2021 ◽  
pp. 415-431
Author(s):  
Deepika N. ◽  
Nirupama Bhat Mundukur ◽  
Victer Paul
Keyword(s):  
Stock Market ◽  
Oil And Gas ◽  
Stock Exchange ◽  
Market Performance ◽  
Listed Companies ◽  
Secondary Market ◽  
Secondary Markets ◽  
Stock Indices ◽  
Stock Market Performance ◽  
Indian Stock Market

A stock exchange facilitates trading shares of pubicly listed companies. The trading process is operated through two non-separable and mutually supporting segments called as primary and secondary markets, governed by the Security and Exchange Board of India abbreviated as SEBI. The platform which forms and sale the new securities is known as primary market and the platform in which dealings of these previously issued securities is known as secondary market. Stock market or equity market is the area that facilitates the trading of the publicly listed security shares in the secondary market, and as of now, more than 1300 securities are available in the exchange for trading. The trading process is analyzed using trading ring in earlier days. The authors focus on analyzing the effect of dollar sell, dollar purchase, and commodities price under the oil and gas group crude oil on Indian stock indices.

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