scholarly journals Selected Macroeconomic Indicators and Stock Market Performance in a Developing Economy: A Case for the Nigeria Stock Exchange Market

2020 ◽  
Vol 8 (2) ◽  
Author(s):  
Justin C. Alugbuo ◽  
Emeka Eze
Keyword(s):  
Stock Market ◽  
Stock Exchange ◽  
Market Performance ◽  
Developing Economy ◽  
Exchange Market ◽  
Stock Market Performance ◽  
Macroeconomic Indicators

scholarly journals Causality between Macroeconomic Indicators and Stock Market: An Econometric Analysis

2021 ◽  
Vol 4 (1) ◽  
pp. 137-155
Author(s):  
Muhammad Imad ud Din Akbar ◽  
Abdul Rauf Butt ◽  
Ali Farhan Chaudhry
Keyword(s):  
Economic Growth ◽  
Stock Market ◽  
Emerging Economies ◽  
Stock Exchange ◽  
Market Performance ◽  
Simultaneous Equations ◽  
Stock Market Performance ◽  
Macroeconomic Indicators ◽  
The Impact

We attempt to examine the causality between economic growth and stock market performance of Pakistan for the years 1992M01-2012M12. For this purpose, the test devised by Granger (1988) has been employed. The results reveal a bi-directional causality between economic growth and stock market performance of Pakistan proxied by Karachi Stock Exchange capitalization (KSECAP). Once this bidirectional causality is established, a system of simultaneous equations has been specified and estimated by 2SLS to find the impact of economic growth and selected macroeconomic indicators on the stock market of Pakistan. The estimated results lead to the conclusion that economic growth affects the stock market of Pakistan and vice versa. The implications of the study are of paramount importance, especially for the emerging economies. Hence, bearing in mind the role of macroeconomic indicators in the performance of stock market a better policy can be formulated to enhance the growth of capital markets that in turn will increase the economic growth of emerging economies such as Pakistan and vice versa.

scholarly journals Impact of Khartoum Stock Exchange Market Performance on Economic Growth: An Autoregressive Distributed Lag ARDL Bounds Testing Model

Economies ◽  
2020 ◽  
Vol 8 (4) ◽  
pp. 86
Author(s):  
Tomader Elhassan ◽  
Bakhita Braima
Keyword(s):  
Economic Growth ◽  
Stock Market ◽  
Stock Exchange ◽  
Market Performance ◽  
Exchange Market ◽  
Bounds Testing ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Stock Market Performance ◽  
The Impact

This study examines the impact of the Khartoum Stock Exchange market performance on economic growth in Sudan from Q1 1995 to Q4 2018. The data were collected from the Central Bank of Sudan (CBS) and Khartoum Stock Exchange (KSE). The autoregressive distributed lag (ARDL) bounds test was applied to estimate the impact of the Khartoum Stock Exchange market performance on economic growth. The results show that the Khartoum Stock Exchange market performance has a limited impact on economic growth. The results of the ARDL test reveal that the speed of adjustment towards long-run equilibrium after a short-term shock, which confirms the stability of Sudanese economic system through stock market performance, equals 24% only. Although market capitalization has a positive and significant impact on economic growth in the long term, the turnover ratio and stocks traded value showed insignificant negative impacts on economic growth. We recommend that suitable investment policies should be developed by policy makers for the Sudanese economy to allow the Khartoum securities market to attract foreign investors and encourage local investors in order to improve the efficiency and effectiveness of the stock market, thus, leading to a boost in securities exchanges as well as economic growth.

Stock market performance and foreign exchange market in Egypt: does 25th January revolution matter?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ahmed A. El-Masry ◽  
Osama M. Badr
Keyword(s):  
Stock Market ◽  
Causal Relationship ◽  
Foreign Exchange ◽  
Foreign Exchange Market ◽  
Market Performance ◽  
Exchange Market ◽  
Content Type ◽  
Stock Market Performance ◽  
Portfolio Managers ◽  
Market Indexes

PurposeThis paper examines the causal relationship between stock market performance and foreign exchange market in Egypt over the period 2009–2016. The study period is divided into two sub-periods: pre- and post-January 25th Egyptian revolution (ER). The reason is to examine how this revolution affects the causal relationship between the two markets' performance.Design/methodology/approachIn this study, the daily basis data are used to enable good and effective observation changes in the foreign exchange rate and stock market performance over time. Stock market indexes and stock market capitalization are used as proxies for stock market performance. Further, the Egyptian pound to US$ exchange rate is used as a measure for foreign exchange market performance. The study analysis is done in stages. The first is to check the variables' stationarity for the pre- and post-revaluation. The second is to examine the cointegration among the variables. The third is to run vector autoregression (VAR) estimates, after which VAR Granger causality tests are employed.FindingsThe results show that the data are not stationary at their levels but stationary in their first difference level while there is no cointegration in the long-run among the variables in both sub-periods. Further, findings indicate that, in the pre-January 25th revolution period, there is a significant causal relationship between the foreign exchange market and stock market indexes and a significant causal relationship between market capitalization (CAP) and exchange rate at the 1% level. However, in the post-January 25th revolution period, the study does not find a significant causal relationship between foreign exchange market and stock market indexes and capitalization.Research limitations/implicationsAs this study focuses on the causal relationship between foreign exchange and stock markets before and after the 25th January Revolution, other macroeconomic variables such as consumer price index, interest rate and GDP were excluded for the comparison purposes with other studies. Further research is suggested to include them in the analysis to find out its effect on the performance of stock market and foreign exchange market.Practical implicationsThe existence of long-run bidirectional causality means that portfolio managers and hedgers may have improved their understanding regarding the dynamic relationship between foreign exchange market and stock market performance as this may help them to plan and implement suitable hedging strategies to guard against currency risk in future crises or events. Investors, fund and portfolio managers and policymakers should give much attention to these event-specific interactions when they make capital budgeting decisions and implement regulation policies. Furthermore, our results may allow portfolio managers, investors and policymakers to assess the importance of informational efficiency for both markets.Originality/valueThis paper is an original contribution to the literature that concerns the causal relationship between stock market and foreign exchange market in the period of political instability and social unrest such as the January 25th Revolution in one of the emerging markets, namely Egypt.

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 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 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.

scholarly journals Interest rate, liquidity and stock market performance in Ghana

2016 ◽  
Vol 4 (1) ◽  
pp. 46 ◽  
Author(s):  
Micheal Kofi Boachie ◽  
Isaac Osei Mensah ◽  
Albert Opoku Frimpong ◽  
Martin Ruzima
Keyword(s):  
Interest Rate ◽  
Stock Market ◽  
Stock Exchange ◽  
Market Performance ◽  
Stock Market Index ◽  
Monthly Data ◽  
Market Index ◽  
Stock Market Performance ◽  
M Estimation ◽  
Ghana Stock Exchange

<p>In this study, we examined the effect of interest rate and liquidity growth on stock market performance in Ghana using monthly data from the Ghana Stock Exchange and Bank of Ghana for the period 2010:12 to 2013:11. After employing robust linear regression (M-Estimation), there is a compelling evidence that performance of the Ghanaian stock market is highly influenced by liquidity growth, exchange rate and inflation; and that interest rate effect is insignificant though positive on the stock market index for the period under study.</p>

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