scholarly journals NAIROBI STOCK EXCHANGE: A REGRESSION OF FACTORS AFFECTING STOCK PRICES

2019 ◽  
Vol 4 (1) ◽  
pp. 11
Author(s):  
Dr. Jane Kiboi ◽  
Dr. Paul Katuse
Keyword(s):  
Regression Analysis ◽  
Financial Markets ◽  
Exchange Rates ◽  
Interest Rates ◽  
Money Supply ◽  
Stock Prices ◽  
Stock Exchange ◽  
Macroeconomic Factors ◽  
Indicator Variable ◽  
Market Index

Purpose: This paper analyzed factors influencing the market index for the Nairobi Stock Exchange (NSE), taking a time horizon between January 2008 to December 2010. We posit that money supply, inflation rates, exchange rates, and interest rates are significant covariates affecting the market index.Methodology: The market index and the macroeconomic covariates data was obtained from the NSE and the Central Bank of Kenya. Multiple regression analysis was used to estimate the effects of the chosen factors that affect stock values, with the market index being the indicator variable for stock values.Results: Regression analysis results revealed that the selected macroeconomic covariates - interest rates, exchange rates and inflation - significantly affect the value of stocks in the NSE. Money supply was not significant even though it had a positive correlation with the stock prices. Factor regression models described the sensitivity of an asset return as a function of one or more factors.Contribution to policy, practice and theory: Based on our analyses, we conclude that traders should constantly review the prevailing economic conditions, based on the patterns of the determinant macroeconomic factors identified in this study, to model their investment strategies. The scope of our study being limited to NSE and four macroeconomic factors, the findings of this paper may not be directly applicable to other financial markets. We therefore suggest future research directions to extend to other financial markets and include all macroeconomic factors.

Effect of Macroeconomic Factors on Stock Prices in Indonesia

2019 ◽  
Vol 118 (5) ◽  
pp. 57-61
Author(s):  
Endang Mahpudin ◽  
Disman ◽  
Nugraha ◽  
Mayasari
Keyword(s):  
Exchange Rates ◽  
Interest Rates ◽  
Money Supply ◽  
Stock Prices ◽  
Emerging Market ◽  
Macroeconomic Factors ◽  
Factors Influencing ◽  
Emerging Market Countries ◽  
Testing Data ◽  
Significant Factors

This study aims to examine the fundamental factors that influence stock prices in Indonesia. This is academically important to test theories that have been found previously. This study uses a quantitative approach. The data of this study focus on inflation factors, exchange rates, interest rates and the money supply in Indonesia from 2004-2018, this study uses the VAR and VECM models in testing data that has been found. The results showed that from the four macroeconomic factors tested, there were no significant factors influencing stock prices in Indonesia, these findings confirmed that in emerging-market countries, there were no influential macroeconomic factors.

scholarly journals Pengaruh Tingkat Suku Bunga, Inflasi Dan Nilai Kurs Terhadap Harga Saham Perusahaan Perhotelan Yang Terdaftar Di Bursa Efek Indonesia Per Triwulannya Periode 2016-2018

2021 ◽  
Vol 4 (2) ◽  
pp. 871-877
Author(s):  
Rahmat Dewa Bagas Nugraha ◽  
H.M Nursito
Keyword(s):  
Exchange Rate ◽  
Interest Rate ◽  
Exchange Rates ◽  
Interest Rates ◽  
Quantitative Study ◽  
Stock Prices ◽  
Stock Exchange ◽  
Secondary Data ◽  
Ratio Analysis ◽  
The Interest Rate

This study aims to determine and analyze the factors that affect stock prices through appropriate ratio analysis. As for the ratio of interest rates, inflation and exchange rates. Researchers want to know and analyze the effect partially or simultaneously between interest rates, inflation, and exchange rates on stock prices. This research is a quantitative study using secondary data. The object of this research is hotel companies listed on the Indonesia Stock Exchange for the period 2016-2018. The sample used in this study were 3 hotel with certain characteristics. The results of research simultaneously using the F test show that there is no influence between interest rates, inflation and exchange rates on stock prices because the calculated value is smaller than the table. Partially with the t test it can be concluded that there is no influence between interest rates on stock prices because the tcount value in the interest rate variable is smaller than the t table. Likewise, the t calculation of inflation and the exchange rate is smaller than the t table, so that there is no partial effect of the two variables on stock prices. Keywords: Stock Prices, Interest Rates, Inflation and Exchange Rates

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 Analisis Pengaruh Faktor Makro Ekonomi Terhadap Return Saham pada Sektor Properti yang Terdaftar di Bursa Efek Indonesia Periode 2014-2017

2020 ◽  
Vol 4 (1) ◽  
pp. 19
Author(s):  
Daniel Phen
Keyword(s):  
Exchange Rates ◽  
Interest Rates ◽  
Stock Returns ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Multiple Linear Regression Analysis ◽  
Primary Objective ◽  
Consumer Confidence ◽  
Macroeconomic Factors ◽  
Confidence Index

The primary objective of this research is to study the influence of macroeconomic factors toward stock return of property, construction and real estate sectoral index in Indonesia Stock Exchange for 2014 until 2017. The variables for macroeconomic factors included inflation, interest rates, exchange rates, and Consumer Confidence Index. This research use multiple linear regression analysis method. The result of this research showed that inflation, interest rates, exchange rates, and Consumer Confidence Index simultaneously have significant effect toward stock returns. Partially, the research showed that only exchange rates has significant effect toward stock returns, while inflation, interest rates, and Consumer Confidence Index have no significant effect toward stock returns.

scholarly journals Analisis Pengaruh Inflasi, Kurs, dan Suku Bunga Terhadap Harga Saham pada Perbankan Konvensional Yang terdaftar di Bursa Efek Indonesia Tahun 2014-2018

Jurnal Edueco ◽  
2020 ◽  
Vol 3 (1) ◽  
pp. 43-54
Author(s):  
Jumria Jumria
Keyword(s):  
Linear Regression ◽  
Exchange Rates ◽  
Interest Rates ◽  
Multiple Linear Regression ◽  
Stock Prices ◽  
Stock Exchange ◽  
Secondary Data ◽  
Service Companies ◽  
Banking Service ◽  
Conventional Banks

ABSTRACTThis study aims to determine the effect of inflation, exchange rates and interest rates on stock prices in conventional banks listed on the Indonesia Stock ExchangeThis study uses a sample of 5 banking service companies listed on the Indonesia Stock Exchange for a period of 5 years ( 2014 – 2018 ). The type of data used is quantitative data, the source of data used is secondary data. The analytical method used is multiple linear regression (multiple regression analysis).The results of the study through the calculation of multiple linear regression obtained inflation has a positive and not significant effect on stock prices in conventional banks listed on the Indonesia Stock Exchange. Exchange rates have a negative and not significant effect on stock prices. Interest rates have a negative and significant effect on stock prices in conventional banks listed on the Indonesia Stock ExchangeKeywords : inflation, exchange rates, interest rates, stock prices.

scholarly journals DID MICROECONOMIC AND MACROECONOMIC FACTORS AFFECT STOCK PRICES?

2020 ◽  
Vol 14 (2) ◽  
pp. 281-295
Author(s):  
Fenty Fauziah ◽  
Bun Yamin ◽  
Fitria Rahmah
Keyword(s):  
Interest Rates ◽  
Stock Prices ◽  
Stock Exchange ◽  
Profit Margin ◽  
Economic Factors ◽  
Manufacturing Companies ◽  
Return On Assets ◽  
Macroeconomic Factors ◽  
Net Profit ◽  
Equity Ratio

This study to analyze and explain the factors that influence stock prices. The object of this research is the automotive and components sub sector manufacturing companies sector on the Indonesia stock exchange for periode 2010-2018. The variables used in this study are stock prices, micro economic factors and macro economic factors. Micro economic factors are projected by Debt to Equity Ratio (DER), Gross Profit Margin (GPM), Net Profit Margin (NPM), Price Earning Ratio (PER) and Return on Assets (ROA). Macro economic factors used as variables are inflation (INF), interest rates (INT) and Gross Domestic Product (GDP). Data analysis and hypothesis testing were carried out using the SmartPLS 3.0 program. The results of the study indicate that stock prices are determined by microeconomic factors projected by Net Profit Margin (NPM). Companies must keep trying to make a profit so that stock prices remain good, so investors are still interested in owning shares.

scholarly journals Present Scenario Of Derivative Market In India : An Analysis (2010-2018)

2018 ◽  
Vol 8 (02) ◽  
Author(s):  
Meenakshi Bindal
Keyword(s):  
Financial Markets ◽  
Interest Rates ◽  
Stock Prices ◽  
Financial Risk ◽  
Financial Risks ◽  
Macroeconomic Factors ◽  
Business World ◽  
Time Period ◽  
Financial Derivative ◽  
Derivative Market

Derivative market has an important role to play in economic development of a country. Change in exchange rates, interest rates and stock prices of different financial markets have increased the financial risk to the corporate world. Adverse changes in the macroeconomic factors have even threatened the very survival of business world. It is therefore necessary to develop a set of new financial instruments known as derivatives in the Indian financial markets, to manage such risk. The objectives of these instruments is to provide commitments to prices for future dates for giving protection against adverse movements in future prices, in order to reduce the extent of financial risks. This paper traces the growth and current position of India derivative market. The present study is an effort to analyze derivative trading in india. It is an effort to demonstrate the growth and expansion of financial derivative of NSE in India the time period i,e 2010-2011 to 2017-18.The market turnover has grown from Rs.17663664.57 Cr. in 2009-2010 to 1163539816.124 Cr. in 2017-18.

scholarly journals The Effect of Inflation, Interest Rates and Exchange Rates on Stock Prices of Manufacturing Companies in Basic and Chemical Industrial Sectors on the Indonesia Stock Exchange (IDX)

2020 ◽  
Vol 1 (1) ◽  
pp. 34-49
Author(s):  
Jefry Jefry ◽  
Abid Djazuli
Keyword(s):  
Exchange Rates ◽  
Interest Rates ◽  
Stock Prices ◽  
Stock Exchange ◽  
Industrial Sector ◽  
Least Square ◽  
Manufacturing Companies ◽  
Chemical Manufacturing ◽  
Basic Industry ◽  
Industrial Sectors

This study examines the effect of inflation, interest rates and exchange rates on stocks in basic industrial sector and chemical manufacturing companies on the Indonesia Stock Exchange (BEI). The study period is 2013 to 2017. An ordinary least square (OLS) is employed. The results show that (1) There is a significant effect of inflation, interest rates and exchange rates on stocks. together with the Basic Industry and Chemical Sector Manufacturing companies on the Indonesia Stock Exchange (IDX); (2) There is a significant influence of inflation on shares in manufacturing companies in the Basic Industry and Chemical Sector on the Indonesia Stock Exchange (BEI); (3) There is no significant effect of interest rates on stocks in basic industrial sector and chemical manufacturing companies on the Indonesia Stock Exchange (BEI); (4) There is no significant effect of Exchange Rates on Shares in Basic Industry and Chemical Manufacturing companies on the Indonesia Stock Exchange (IDX).

scholarly journals Effects of Macroeconomic Volatility on Stock Prices in Kenya: A Cointegration Evidence from the Nairobi Securities Exchange (NSE)

2017 ◽  
Vol 9 (2) ◽  
pp. 1 ◽  
Author(s):  
Muinde Patrick Mumo
Keyword(s):  
Exchange Rates ◽  
Interest Rates ◽  
Money Supply ◽  
Stock Prices ◽  
Series Data ◽  
Macroeconomic Volatility ◽  
Long Run ◽  
Equilibrium Relationship ◽  
Macro Variables ◽  
Long Run Equilibrium

This study examined the effects of macroeconomic volatility on stock prices via selected macro variables using the Johansen co-integration methodology. Time series data was obtained from the Kenya National Bureau of Statistics (KNBS) and the Central Bank of Kenya (CBK) for the period 1998-2015. Macro variables studied include inflation, money supply, exchange rates and interest rates against the NSE 20 share index. The study exploits the presence of unit roots of order 1(1) on the data set to apply the Johansen procedure and the Vector Error Correction Model (VECM) for data analysis. The study finds both a long-run equilibrium relationship between stock prices and the macroeconomic variables and between inflation and other macro variables. Specifically, and contrary to earlier evidence on the Kenyan market, the results suggest a negative long-run equilibrium relationship between money supply and stock prices. Inflation shows negative but insignificant relationship. Exchange rates and interest rates show a positive relationship. The short-term dynamics from the VECM support earlier documented evidence, implying the earlier evidence reflect short-run and not long-run dynamics.The study concludes that the effects of inflation seem to outweigh any possible gains from money supply on aggregate firm output in the long-run. Also, the study adduces evidence of possible spurious problems on earlier documented evidence from the reviewed studies that could be attributable to non stochastic processes in the models used. A robustness check using a multivariate approach points to this and confirms the co-integration results.

scholarly journals Effect of Corporate Fundamental and Macro Economic Factors on Share Prices in Indonesia Stock Exchange Market

2020 ◽  
Vol 1 (2) ◽  
pp. 117-127
Author(s):  
Mulyanto Mulyanto ◽  
◽  
Riyanti Riyanti ◽  
Keyword(s):  
Interest Rates ◽  
Stock Prices ◽  
Stock Price ◽  
Stock Exchange ◽  
Secondary Data ◽  
Sampling Technique ◽  
Least Square ◽  
Research Subjects ◽  
Macroeconomic Factors ◽  
Share Prices

This paper aims to examine and analyze the influence of fundamental and macroeconomic factors on stock prices either partially or simultaneously. The research subjects focused on LQ45 Index companies listed on the Indonesia Stock Exchange. Secondary data of Indonesian stock market share prices covering between 2013-2019 were used. One Least Square was used to analyze the data. The sampling technique used is the purposive sampling method, the sample used is the LQ45 Index Company. The results shows fundamental factors include ROA, ROE, DER, EPS, and PER have a positive and significant effect on stock prices. and Inflation and interest rates have a negative and significant effect on stock prices. And simultaneously these variables have a significant and significant effect on stock prices. The study can provide a picture that stock price movements have a strong and clear influence on the company's fundamentals and are reflected in some of the ratios contained in the financial statements, as well as macroeconomic conditions.

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