Designing a Qualitative Study on factors that affect the Dhaka Stock Exchange Broad Market Index
Keywords:
DSE, Stock Market, Dhaka Stock Exchange, Factor AnalysisAbstract
Prior information often tends to shift the human mind into making decisions not predetermined and stock markets are no exceptions. The Dhaka Stock Exchange (DSE) has been Bangladesh’s premier bourse even prior to the country’s independence but has lagged behind its South-East Asian peers like the SENSEX and KSE-ALL. The aim of the study was to determine whether it is possible to filter, design, and evaluate qualitatively as to which of the macroeconomic variables may have had an impact on the country’s premier bourse in terms of assessing its underperformance. A qualitative survey was designed and used to examine 60 industry personnel whose inputs were subsequently filtered through a simple regression and validated by an F-Test. The overall broad market return of the DSE was found to be positively correlated with the exchange rate and inflation, whilst it had exhibited a negative correlation with foreign exchange reserves, interest rate, and broad money supply parameters.
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