Recent Movement of DSE General Index Source: www.dsebd.org  

Recent Movement of DSE General Index Source: www.dsebd.org  

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This paper investigates the impact of monetary policy variables on the performance of recent post crashed stock market of Bangladesh using monthly data from 2011. As a dependent variable Dhaka Stock Exchange (DSE) General Index (DGEN) has been used as a proxy for stock market performance and three independent variables have been used namely money s...

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Citations

... The study of Dewan (2012) investigated the impact of monetary policy on stock market in Bangladesh from the period of 2006 to 2012. Study also finds the effect of different monetary policy variables on the stock market performance. ...
... Monetary policy rate has insignificant positive effect on all share index while lending rate has significant positive effect on all share index. [15] investigated the effect of monetary policy variables on the performance of the stock market of Bangladesh using monthly data over the period of January, 2006 to July, 2012. As a dependent variable, DSE General (DGEN) Index was used as a proxy for stock market performance and four independent variables-money supply, repo rate, inflation rate and threemonth Treasury bill rate were used as proxy for monetary variables. ...
... A higher monetary policy rate, results in high lending rate which makes investment in the capital market less attractive leading to frequent volatility in securities prices owing to variation in cost of capital. This is consistent with[15,16,17,18] on the negative correlation between monetary policy rate and stock market performance. On the other hand, it disagrees with the result of [14] who found a positive insignificant relationship existing between monetary policy rate and all share index in Nigeria. ...
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This study examined the effect of monetary policy on value of stock traded in Nigerian Stock Exchange. Specifically, we ascertained the effect of monetary policy rate, liquidity ratio and loan to deposit ratio on value of stock traded using the Autoregressive Distribute Lag (ARDL) based on annual data from 1986 to 2017. Our findings showed that monetary policy rate, liquidity ratio and loan to deposit ratio have no significant effect on value of stock traded. Monetary policy rate maintained a negative relationship with value of stock traded, while liquidity ratio and loan to deposit ratio positively correlated with value of stock traded. We are vehemently of the view that expansionary monetary policy that guarantees adequate liquidity in the economy should be pursued vigorously by the Central Bank of Nigeria. Adequate level of liquidity offers firms’ in the stock market better access to financial resources which will increase their revenue and thus appreciation in their stocks trading.
... In the discussion on the impact of monetary policy on post crashed Dhaka stock market performance evidence, Al Mukit and Shafiullah (2012) concluded that it would not be possible for an economy to sustain growth without the convenience or presence of the stocks and other financial markets. Although there is a link between the money market and the capital market, as a part of the capital market, stock market of a country plays significant role to shape the economy of a country.According to Hassan and Chowdhury (2008), an efficiency of Bangladeshi Stock Market is largely dependent on the collection of both the domestic and foreign funds. ...
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... With this scenario, the monetary authorities tries to adjust monetary policy tools to suit the macroeconomic goal of the government and if possible, jettison any fundamental that may distort financial system stability, reliability and economy in general. Since there exist functional relationship between monetary policy and market index, so it is necessary for the Central Bank to determine the effect of monetary variables such as money supply, interest rate and inflation rate on the performance of capital market, and besides, a stock market is not always blessed with upbeat condition [2]. Despite the fact that the influence of monetary policy on capital market sustainability is of immense significance to the Central Bank, individual and corporate investors need to be aware of uncertainties that would be attached to the value of shares propel by variation in monetary policy tools of the Central Bank. ...
... Afroze [1] Muktadir-Al-Mukit and Shafiullah [2] investigated the impact of monetary policy variables on the performance of recent post crashed stock market of Bangladesh using monthly data from 2011. As a dependent variable, Dhaka Stock Exchange (DSE) General Index (DGEN) was used as a proxy for stock market performance and three independent variables namely money supply, repo rate and inflation rate were proxies for monetary policy tools. ...
... Fiscal policy is able to influence directly on the share market. Mukit and Shafiullah (2012) found that Granger causality analysis was unidirectional causality from inflation to DGEN index and money supply to DGEN index. The market was trying to recapture its stable condition by employing different policies since the crash occurred. ...
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