scholarly journals Equity Market Indicators as Drivers of Foreign Portfolio Investment in Pakistan

2018 ◽  
Vol 2 (2) ◽  
pp. 43-47
Author(s):  
ZAHIRULLAH Zahir ◽  
Mumtaz Hussian Shah
Keyword(s):  
Stock Market ◽  
Stock Exchange ◽  
Equity Market ◽  
Portfolio Investment ◽  
Short Term ◽  
Foreign Portfolio Investment ◽  
Market Factors

The study is about the factors responsible of attracting foreign portfolio investment (FPI) to Pakistan stock exchange (PSX). In this study the stock market factors of PSX have been explored to determine their short term and as well as long term association with the equity market indicators of PSX.

scholarly journals Mathematical Analysis Method for Stock Market Using MA and KDJ Indicator

2019 ◽  
Vol 4 (2) ◽  
pp. 21 ◽  
Author(s):  
Man Yuan
Keyword(s):  
Stock Market ◽  
Inflation Rate ◽  
Stock Exchange ◽  
Rapid Development ◽  
Short Term ◽  
Important Position ◽  
Long Term Trend ◽  
Term Analysis ◽  
Capital Transaction

With the rapid development of Economic Globalization as well as international trade and capital transaction, stock market take a more and more important position in the finance analysis.In this thesis, I combined the MA the KDJ, MA for long term trend analysis and KDJ for short term analysis. First I introduced MA and KDJ separately, their strength and weakness. Then I try to put them together, adjust the parameters to make them suitable for Shanghai Stock Exchange Composite Index.Then I use my model to simulate transaction in real world, estimate the rate of return and comparing with the stocks’ holding rate and inflation rate. The result is pleasant. At last, I give a conclusion and a further advice to this model.

scholarly journals Revisiting the need to regulate foreign portfolio investor in the Indonesian stock market

2021 ◽  
Vol 29 (2) ◽  
pp. 184-199
Author(s):  
Ulya Yasmine Prisandani ◽  
Felix Pratama Tjipto
Keyword(s):  
Comparative Analysis ◽  
Stock Market ◽  
South Korea ◽  
Stock Exchange ◽  
Portfolio Investment ◽  
Empirical Methods ◽  
Foreign Portfolio Investment ◽  
Portfolio Investments ◽  
Laws And Regulations

This research aims to reintroduce the issue of foreign portfolio investment in Indonesia by way of presenting an analysis on the prevailing Indonesian laws and regulations, comparative analysis with well-established jurisdictions, as well as an evaluation on the need for regulating foreign portfolio investment in Indonesia. The methods used in this research combine normative and empirical methods where a review is conducted on the laws and regulations in Indonesia as well as in South Korea and India as comparative jurisdictions, in addition to an interview conducted with the Indonesian Stock Exchange.  The research found that Indonesia does not have a separate, comprehensive set of regulations on foreign portfolio investments yet whereby inferences need to be made from the prevailing laws and regulations that are general in nature. After the comparative overview and analysis, there appears to be a need for separate regulation for foreign portfolio investments in Indonesia, either by way of enacting a completely new set of laws and regulations or alternatively, by way of creating implementing regulations to support the prevailing laws.

scholarly journals Does Corruption and Government Regulation Matter to Foreign Portfolio Investment: Evidence from Asian and the European Union Countries

2021 ◽  
Vol 07 (11) ◽  
Author(s):  
Zainuri . ◽  
Keyword(s):  
European Union ◽  
Economic Integration ◽  
Portfolio Investment ◽  
The European Union ◽  
Asian Countries ◽  
Short Term ◽  
Foreign Portfolio Investment ◽  
Macroeconomic Variables ◽  
Portfolio Investments

Economic integration in various countries impacts fluctuations in and out of capital and multiple economic cooperation between countries. The investment that is one form of implementation of economic integration positively influences a country's capital reserves. The study analyzed the influence of macroeconomic variables and proxied institutions with corruption variables and government regulations on foreign portfolio investment fluctuations in the twenty Asian and EU countries with the largest funds flows. The data used in this study is a data panel with a period from 2002-2019. The analysis method used in this study uses two methods at once, namely the Generalized Method of Moment (GMM) and the Panel Vector Error Correction Model (PVECM), to analyze the cost of the analysis results. The study found that macroeconomic instruments projected with GDP variables had a positive and significant influence on foreign portfolio investments, while exchange rate variables negatively affected foreign portfolio investments. Important findings in this study that corruption consistently negatively and significantly affects foreign portfolio investments are based on both GMM test results and PVECM tests in the long term. In contrast, the results of PVECM tests in the short term do not have any macroeconomic variables or institutions that significantly affect foreign portfolio investment. This means that investors' consideration in investing in Asian countries and Europe is based on a long-term perspective than on short-term economic dynamics. In addition, regulatory variables have a positive and significant effect on foreign investment portfolios in twenty Asian countries and the European Union with the largest portfolio investment fund flow.

scholarly journals MACROECONOMIC VARIABLES AND STOCK MARKET MOVEMENT IN NIGERIA (1988 – 2019)

2021 ◽  
Vol 8 (1) ◽  
pp. 86-95
Author(s):  
Olaolu O. ◽  
◽  
Nwankpa C. ◽  
Keyword(s):  
Time Series ◽  
Interest Rate ◽  
Stock Market ◽  
Crude Oil ◽  
Inflation Rate ◽  
Equity Market ◽  
Oil Price ◽  
Portfolio Investment ◽  
Crude Oil Price ◽  
Foreign Portfolio Investment

The goal of this study was to analyse empirically the effect on the stock market movement of five selected macro-economic variables, including the exchange rate, inflation rate, interest rate, crude oil price, and foreign portfolio investment. For the movement of the stock market, stock market capitalizations were used as a reference. Information from the annual time series covering the period between 1988 and 2019 was used. The analysis started with examining stochastic characteristics of each time series by testing their stationarity using Augmented Dickey Fuller (ADF) test. The findings show that only equity market capitalization and crude oil price was found stationary at level, while the other time series were found stationary at first difference. The bounds cointegration test procedure indicates that the variables have long-run equilibrium relationship amongst themselves. Analysis from the study showed that foreign exchange rate, interest rate, inflation rate, crude oil, and foreign portfolio investment are all significant in determining the performance of equity market capitalisation. They were all found to have a significant effect on stock market movement in Nigeria. Based on these findings, the study recommended that there is need to formulate sustainable macro-economic policies to curtail depreciation of the Naira, high inflation, and interest rate while attracting long-term foreign portfolio investors into Nigeria. Aggressive diversification of the economy should be made from its mono-cultural dependence on oil whose price over which Nigeria has no control.

scholarly journals The Commitment of Foreign Direct Investment and Foreign Portfolio Investment on the Monetary Development of Pakistan

2019 ◽  
Vol 5 (4) ◽  
pp. 7-12
Author(s):  
Kinza Yousfani ◽  
Farhana Khowaja ◽  
Ahmed Ali Yousfani
Keyword(s):  
Developing Countries ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Large Scale ◽  
Portfolio Investment ◽  
Short Term ◽  
Foreign Portfolio Investment ◽  
Economic Progress ◽  
Practical Limit

Foreign direct investment has played an essential role in the economic growth of developing countries. The flow of foreign capital in the capital takes place mostly in the form of loans, foreign direct investment (FDI) and foreign portfolio investment (FPI). The FDI could influence higher consumption and Investment in short-term and reflect destructively on long-term growth. However, an increase in FDI may decrease FPI volatility because it enhances the confidence of foreign investors and brings more investment in the home country. The Pakistan growth rate was witnessed from 2001-2016, which was descending due to various macroeconomic variables which influence the foreign direct investment of Pakistan. The FDI affects positively in the development process and economic progress as it supplies capital for developing nations for investment purpose. A few investigations have been directed on contact between FDI, FPI and large-scale manufacturing. Because of this plausibility, FDI impacts monetary extension, and thus, financial solidness impact FDI inflow, the connection among FDI and the development of the economy are likely unique. Also, the remote venture may impact monetary progression legitimately and in a roundabout way. In this manner, it is recommended in reliance hypothesis that FDI stream would not impact long haul practical limit in creating economies. Henceforth the progression of remote capital in a nation happens for the most part as credits, FDI and FPI. Likewise, the determinants of FPI incorporates factors which increment interest for outside trade and urges remote speculators to contribute their capital over the creating scene. Hence, therefore, this paper highlights the importance of FDI and FPI on the growth of developing countries.

Short Term and Long Term Herding Prospects: Evidence from Pakistan Stock Exchange

2021 ◽  
pp. 119-144
Author(s):  
Shaista Jabeen ◽  
Sayyid Salman Rizavi
Keyword(s):  
Stock Market ◽  
Stock Returns ◽  
Stock Prices ◽  
Stock Exchange ◽  
Short Term ◽  
Fundamental Information ◽  
New Information ◽  
Herd Behaviour ◽  
Price Instability

The present research intends to examine the herd behaviour of investors in the Pakistan Stock Exchange (PSX). Herd behaviour in stock market is sometimes based on fundamental information, which causes quick price adjustments to new information and leads to efficient markets. Still, sometimes it is not dependent on fundamental information and results in price instability. Herding can be a short term phenomenon, but sometimes a longer time span can provide favourable outcomes for the occurrence of herd behaviour. Considering these diverse views, intraday, daily, weekly, and monthly stock prices of 528 companies listed in the PSX have been used to calculate stock returns. Market-wide herd measure, i.e. CSAD, has been used to compute the herd behaviour. Data has been investigated for autocorrelation, heteroscedasticity, and stationarity issues. Findings revealed that herding did not exist in PSX, but some sectors showed this behaviour. Herd behaviour was more likely to exist at a daily level. The tendency of occurrence of the herding phenomenon gradually decreases at intraday and weekly levels. However, herding cannot be taken as a long term phenomenon as just a single sector was evidenced about its existence at the monthly level. Herding is an inherent phenomenon that is very difficult to eliminate from the stock market completely. However, knowledge and information sharing can guide investors to improve this behaviour Keywords: Herd Behaviour, Behavioural Finance, Return Dispersions, Pakistan Stock Exchange, CSAD

scholarly journals THE SHORT-TERM AND LONG-TERM TRADE-OFF BETWEEN RISK AND RETURN: CHAOS VS RATIONALITY

2019 ◽  
Vol 21 (1) ◽  
pp. 23-43
Author(s):  
Chang Liu ◽  
Haoming Shi ◽  
Liang Wu ◽  
Min Guo
Keyword(s):  
Stock Market ◽  
Stock Exchange ◽  
Rank Test ◽  
Chinese Stock Market ◽  
Short Term ◽  
Risk And Return ◽  
Long Run ◽  
Short Run ◽  
A Share

This paper used the composite construction method proposed by Haugen (1999) and its application by Zhao and Wang (2010) for the Chinese stock market. Utilizing the Shanghai A-share market stocks data, this paper first selected the shares listed on the Shanghai Stock Exchange during January 1, 1997 to December 31, 2017. A portfolio was then built according to the mean variance model of portfolio structure, and simulation results were analysed using the Wilcoxon Signed Rank Test. The relationship between risk and return in the long and short term was explored. Results indicated no significant relationship between the risk and return of the stock portfolio in the short run, which reflects the complexity of the Chinese stock market. However, in the long run, the risk and return of the stock portfolios are positively correlated, which means that high returns are accompanied by high risks, indicating that the stock market will eventually return to rationality. In other words, the A-share stock market will eventually return to be value-driven and the short-term speculators would be outweighed by long-term value investors.

Impact of FII’s and FDI’s on Indian Stock Market

2016 ◽  
Vol 1 (1) ◽  
Author(s):  
Dr. Kamlesh Kumar Shukla
Keyword(s):  
Stock Market ◽  
Financial Markets ◽  
Global Economy ◽  
Short Term ◽  
Earnings Growth ◽  
The Past ◽  
Bull Market ◽  
Indian Stock Market

FIIs are companies registered outside India. In the past four years there has been more than $41 trillion worth of FII funds invested in India. This has been one of the major reasons on the bull market witnessing unprecedented growth with the BSE Sensex rising 221% in absolute terms in this span. The present downfall of the market too is influenced as these FIIs are taking out some of their invested money. Though there is a lot of value in this market and fundamentally there is a lot of upside in it. For long-term value investors, there’s little because for worry but short term traders are adversely getting affected by the role of FIIs are playing at the present. Investors should not panic and should remain invested in sectors where underlying earnings growth has little to do with financial markets or global economy.

scholarly journals International portfolio diversification: United States and south Asian equity markets

2014 ◽  
Vol 61 (2) ◽  
pp. 241-252 ◽  
Author(s):  
Rizwan Mushtaq ◽  
Zulfiqar Shah
Keyword(s):  
Stock Market ◽  
South Asian ◽  
Equity Markets ◽  
Equity Market ◽  
Causality Test ◽  
Market Index ◽  
International Portfolio Diversification ◽  
The Us ◽  
Short And Long Term

This paper explores the dynamic liaison between US and three developing South Asian equity markets in short and long term. To gauge the long-term relationship, we applied Johansen co-integration procedure as all the representative indices are found to be non-stationary at level. The findings illustrate that the US equity market index exhibits a reasonably different movement over time in contrast to the three developing equity markets under consideration. However, the Granger-causality test divulge that the direction of causality scamper from US equity market to the three South Asian markets. It further indicates that within the three developing equity markets the direction of causality emanates from Bombay stock market to Karachi and Colombo. Overall, the results of the study suggest that the American investors can get higher returns through international diversification into developing equity markets, while the US stock market would also be a gainful upshot for South Asian investors.

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