Date post: | 23-Dec-2014 |
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Economy & Finance |
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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