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 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.

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.

Contribution of StockMarket Towards Economic Growth: An Empirical Study on Bangladesh Economy

2017 ◽  
Vol 13 (4) ◽  
pp. 238 ◽  
Author(s):  
Sonia Rezina ◽  
Nusrat Jahan ◽  
Mohitul Ameen Ahmed Mustafi
Keyword(s):  
Economic Growth ◽  
Stock Market ◽  
Market Performance ◽  
Unit Root Test ◽  
Causality Test ◽  
Stock Market Development ◽  
Stock Market Performance ◽  
Augmented Dickey Fuller ◽  
Johansen Cointegration Test ◽  
The Impact

The economic growth of a country is influenced by many different factors. This study aims to investigate the causal relationship between stock market development and economic growth in Bangladesh as well as the impact of stock market performance upon the economic growth of Bangladesh. The stock market performance has been measured by market capitalization ratio, number of listed companies, total value traded and turnover ratio; and the economic growth was represented by real gross domestic product. The periods taken for study were from year 1994 to year 2015.The effect of the stock market reform will also be addressed to explain the relationship. The study has been conducted using Augmented Dickey- Fuller Unit Root Test, Johansen Cointegration Test and the Granger Causality Test. The findings of the research should help the policy makers and regulators to look after their interest in the financial sector of the country.

scholarly journals An Unconventional Example of Big Data: BIST-100 Banking Sub-Index of Turkey

2018 ◽  
Author(s):  
Sadullah Çelik ◽  
Elif İşbilen
Keyword(s):  
Big Data ◽  
Stock Market ◽  
Interest Rates ◽  
Stock Exchange ◽  
Great Influence ◽  
Wavelet Coherence ◽  
Exchange Market ◽  
Economic Agents ◽  
Turkish Economy ◽  
Rich Data

This paper applies Big Data concept to an emerging economy stock exchange market by examining the relationship between price and volume of the Banking index in BIST-100. Stock markets have been commonly analyzed in big data studies as they are one of the main sources of rich data with recordings of hourly and minutely transactions. In this sense, nowcasting the economic outlook has been related to the fluctuations in the stock exchange market as news from companies open to public became important sources of changes in expectations for economic agents. However, most of the previous studies concentrated on the main stock market indices rather than the major sub-indices. This study covers the period 13 December 2017 – 12 March 2018, with minute data and approximately 31000 observations for each of the 11 bank stocks. The effects of stock market movements on exchange rates and interest rates are also examined. The methodologies used are frequency domain Granger causality of Breitung and Candelon (2006) and wavelet coherence of Grinsted et al. (2004). The main finding is the supremacy of the banking index as it seems to have great influence on economic fluctuations in Turkish economy through other high frequency variables and the households’ expectations.

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.

Economic Effects in Islamic Stock Development of the European Countries

2019 ◽  
pp. 58-78 ◽  
Author(s):  
Hasan Dinçer ◽  
Serhat Yüksel ◽  
Zafer Adalı
Keyword(s):  
Economic Growth ◽  
Stock Market ◽  
Inflation Rate ◽  
Stock Exchange ◽  
Private Investment ◽  
Economic Effects ◽  
European Countries ◽  
Causality Test ◽  
Stock Market Development ◽  
High Inflation

The purpose of this chapter is to understand whether economic growth and inflation rate have an effect on the development of Islamic stock market. Within this context, quarterly data of 13 European countries for the periods between 2002:2 and 2016:3 are analyzed with Dumitrescu Hurlin panel causality test. It is concluded that inflation rate and economic growth have a significant effect on the development of Islamic stock market. Because economic growth affects private investment in the country, it has an important impact on the development of Islamic stock exchange. Additionally, inflation rate is accepted as the main cause of Islamic stock market development because it increases uncertainty in the market. Hence, it can be said that countries should focus on the policies to decrease high inflation rates and increase economic growth. With the help of these kind of actions, it will be possible to improve Islamic stock market in the country. Because companies, which are included in Islamic stock market, have to obey ethical rules, it will improve the performance of the economies as well.

scholarly journals Analisis Kausalitas antara Sektor Keuangan dan Pertumbuhan Ekonomi di Indonesia

2010 ◽  
Vol 10 (2) ◽  
pp. 143-158
Author(s):  
Ghozali Maski
Keyword(s):  
Economic Growth ◽  
Stock Market ◽  
Granger Causality ◽  
Market Value ◽  
Financial Sector ◽  
Causality Test ◽  
Vector Error Correction ◽  
Real Gdp ◽  
Private Credit ◽  
Using Data

The economic growth of the country is inseparable from the development of its financial sector. Therefore, this research attempted to prove the existence of causality between financial sector and economic growth in Indonesia using data between Q1 of 1996 to Q4 of 2006. The variables used as proxy for financial sector are monetization, private credit, total deposits, stock market capitalism, and stock market value traded—while the real GDP is used as a proxy for economic growth. This research aims to determine which variable is the most dominant influence in the shock given in causality result.This research methodology used Vector Error Correction Model (VECM) and Granger causality. VECM is used to find out the dominant variable that gave shock, while Granger causality is used to detect the causality between variables. Granger causality test shows the existence of one way causality between real GDP and private credit, total deposit, and stock market value traded. These causalities come from three sources. First, from real GDP to private credit; second, from real GDP to stock market value traded; and the last, from total deposit to real GDP. Meanwhile, VECM test shows the result that the economic growth can be a boosting factor for Indonesian financial sector growth. Moreover, the dominant variable in creating shock on economic growth is stock market value traded.The Granger causality estimation shows that there are one-way causalities between real GDP and private credit, total deposit, and stock market value traded.

scholarly journals Effects of USD Exchange Rate over the Istanbul Stock Market 30 Index and Investigation of the Relationship between Them

2015 ◽  
Author(s):  
Selçuk Kendirli ◽  
Muhammet Çankaya
Keyword(s):  
Exchange Rate ◽  
Stock Market ◽  
Interest Rates ◽  
Stock Exchange ◽  
Causality Test ◽  
Data Set ◽  
Important Place ◽  
Dollar Exchange Rate ◽  
Istanbul Stock Exchange ◽  
The Relationship

It is known that financial markets have important place in today's economy. Individuals could be evaluated their saving with their own research or they could be evaluated their savings with financial experts recommendations. A large portion of those funds of individual or institutional investors managed are directed to the stock market of the country. When considered in terms of Turkey, Istanbul Stock Exchange is examples for this topic. The changes in economic data, is influenced to many variables especially the stock market. It is perceived in the market as bad data that the rising in unemployment, the reduction of industrial production, the increases in interest rates and cost of credit, the increase in foreign exchange rates. In this study, it was investigated the causality of the dollar exchange rate between Istanbul Stock Exchange National 30 Index (BIST-30) with "Granger Causality Test". Monthly values are used including the period of 2009:1 (January of 2009) between period of 2014:12 (December 2014) as data set. We used the first trading day closing values in the calculation of monthly returns for the period. At the end of the study, we couldn’t find any causal relationship between the dollar exchange rate and the BIST-30 Index.

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