Index value is mainly reflected by stock prices related to companies listed in the market, as stock market index fluctuate in accordance to the change of stocks` prices pertaining to the index. Index is affected by domestic economic events as well as international effect. This study is an attempt to search into macroeconomic factors that are correlated with ASE index track. The major conclusions of the study imply that, macroeconomic variables do collectively own a high degree of positive and significant correlation with ASE index. But, by employing single regression, we found that inflation rate and rediscount rate are positively correlated with the index, while money supply. GDP, interest on loans and red are negatively and significantly associated with the changes in ASE index and the only two variables that showed no significant correlation with the market index were the industrial production and interest rate on deposit.
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