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Stock Indices &Foreign Exchange rates A relationship based presentation

WE the people

Name Matric IDMd. Shahadat Hossain B091599

Emran Hossain B091620

Md. Jafar Iqbal B091637

Sazzad Hossain B091633

Md. Mehedi Hossaain Adnan

B091636

Requests to Audiences!

• Please don’t arise questions at the time of presentation.

• Write down your questions.

Here WE are, to clarify!

• Stock Indices & Foreign Exchange rates relationship

• European & Subcontinent reviews with their findings.

• Our own efforts. Some statistical application.• Our Findings.

General Talking's

Stock Index

• A statistical measurement• Who are the users?• How & Why it’s being measured?• Averaging, Board based, Weighted of averaging method

based on market price or market capitalization.

Foreign Exchange rate The worth of one currency to others. Fixed & Floating rate Why & How rates fluctuates?

-Depreciation-Appreciation

How it impacts on stock indices?

European Reviews

The markets here are still in catching up position.

The countries we mainly focused-IrelandSpainGreecePolandSloveniaHungary

Our Subcontinent Reviews

The market here is too dynamic.

Mondol (2001), MalaysiaHung & Yang (2000)

-Relation in Philipines-No relation in S.Korea.

Bhattacharya & Mukharjee(20003)-No relationship

Muhammad & Rashed (2003)-No relationship in India,

Bangladesh, Pakistan, SrilankaMd. Lutfur Rahman, EWU

-No relationship found.

Results of the scholarsNo Relation Positive Relation Negative Relation

Franck and ywng (1972)Solink (1987)Chow et. Al (1997)Bhattachary and Mukharjee (2003)Bahmani Oskooee and Sohrabian (1992)Nieh and Lee (2001)

Aggarwal (1981)Jorion (1987)Roll (1992)

Soenen and Hennigar (1988)

Hypothesis Output

H0= No relationshipHa= Relationship exits

Result: The Null Hypothesis is rejected. So, there Exists a relationship between the FX rates and Stock Index.

Correlation Output

Correlation between –Foreign Exchange rate of USD buying price in exchange of BDTDSE General Index

Result:There is very poor relationship between them. Negligible.

Question & Answering Session