THE ROLE OF MACROECONOMIC INDICATORS ON STOCK INDEX EVIDENCE FROM TURKEY

Authors : Abdullah Ferit EROL, Sinan AYTEKİN

Pages : 61-68

View : 14 | Download : 7

Publication Date : 2019-07-10

Article Type : Research Paper

Abstract :The stock exchange indices are an indicator that is calculated according to the weights of equities that measure the proportional changes of equity prices and returns of the selected companies. Besides the company-specific factors affecting the equity prices of companies, there are also macroeconomic factors. As a result of the influence of these factors on equity prices occur changes in the indices. From this point of view the study, it is aimed to measure the effect of selected macroeconomic variables on BIST 100 index. The BIST 100 Index has been used as dependent variable, the Inflation Ratio, the Overnight Lending Interest Rate, the Golden Ounce Price, the Industrial Production Index and the Growth Rate have been used as the independent variable in the study. Scope of the study, quarterly data between 2009:Q4-2018:Q3 periods are analyzed by the Multiple-linear Regression Model. According to the results of the analysis, between BIST 100 index and the Overnight Lending Interest Rate, the Industrial Production Index and the Inflation Rate have been found statistically significant relationship. On the other hand, between BIST 100 index and the Growth Rate and the Golden Ounce Price variables haven’t got statistically significant relationship.
Keywords : Borsa Istanbul, Macroeconomic Variables, Multiple Linear Regression Analysis