Macroeconomic Determinates Of Stock Price for Industrial Companies Listed In Istanbul Stock Exchange
1Nawzad Hasan, Abdul Jalil Omer, Bestoon Othman*, Karwan A Perot, Amer Abdulla Majid and Fria Abdul kareem
This paper investigates the impact of changes in selected macroeconomic variables on BIST-KYD Price Index in the Turkish stock market. The essential objective of the study is to examine the relation between the Industrial Index in Turkish stock market and the macroeconomic factors. To determine macroeconomic factors influencing SPI. Detect the significant variables and their percent of influence on SPI. The study will examine the relationship between Turkish stock market activities by identifying variables that affect particularly the Industrial Index of the market by employing monthly data for the period January 2003 to December 2013. This study uses the computer software SPSS for applying the analysis. Ordinary Least Squares regression is applied on the series. A Multivariate Regression Model computed on Standard OLS Formula has been used to estimate the relationship. Based on regression coefficient, it was found that Inflation, Exchange rate, Money supply and Interest rate all had negative influence on BIST-KYD index. The model was tested for Autocorrelation and hetroscedactisity and multi-collinearity and was approved to be clear. All the independent variables can explain 87.4% of change in the price of BIST-KYD index in Turkey. As an attempt to add to the growing body of empirical studies on the role of the macroeconomic environment and the stock market’s activity and to answer the question of whether or not the selected macroeconomic variables influence the stock market in the case of Turkey, this study will use developed econometric techniques to empirically investigate this question. Based on the results of this study investors and policy makers may see a reason to improve the financial system in an attempt to achieve higher levels of return and less risks.
Industrial stock price index, Macroeconomics variable, and Turkey