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Uncovering the Effect of News Signals on Daily Stock Market Performance: An Econometric Analysis.
- Source :
- International Journal of Financial Studies; Sep2023, Vol. 11 Issue 3, p99, 25p
- Publication Year :
- 2023
-
Abstract
- The stock markets in developing countries are highly responsive to breaking news and events. Our research explores the impact of economic conditions, financial policies, and politics on the KSE-100 index through daily market news signals. Utilizing simple OLS regression and ARCH/GARCH regression methods, we determine the best model for analysis. The results reveal that political and global news has a significant impact on KSE-100 index. Blue chip stocks are considered safer investments, while short-term panic responses often overshadow rational decision-making in the stock market. Investors tend to quickly react to negative news, making them risk-averse. Our findings suggest that the ARCH/GARCH models are better at predicting stock market fluctuations compared to the simple OLS method. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 22277072
- Volume :
- 11
- Issue :
- 3
- Database :
- Complementary Index
- Journal :
- International Journal of Financial Studies
- Publication Type :
- Academic Journal
- Accession number :
- 172412764
- Full Text :
- https://doi.org/10.3390/ijfs11030099