Interdependence of South Asian &amp; developed stock markets and their impact on KSE (Pakistan)

Tahir, Safdar Hussain; Sabir, Hazoor Muhammad; Ali, Yasir; Ali, Saima Jamat; Ismail, Ammara

doi:10.54784/1990-6587.1218

Cited by 2 publications

(2 citation statements)

References 4 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Stock market inter-linkages, though flooded with benefits, have the risk of contagion effects and ripple effects in the economic environment of other countries (Ehrmann et al, 2005;Forbes & Rigobon, 2002;Gallegati, 2010;Kaminsky & Reinhart, 2002;N'Diaye et al, 2010;Wu et al, 2015). Studies also found interdependence of Asian stock markets with other global markets (Awokuse et al, 2009;Bailey & Stulz, 1990;Caporale et al, 2019;Chung & Liu, 1994;Click & Plummer, 2005;Darrat & Zhong, 2002;Ghosh et al, 1999;Tahir et al, 2013;Tiwari et al, 2013;Yang, Khan & Pointer, 2003) as well as regional markets in European, African, Middle East and Gulf countries (Alvi et al, 2015;Gilmore & McManus, 2002;Naceur et al, 2007;Voronkova, 2004). However, there are fewer studies done exploring the co-movement of Asian stock markets, especially during Recession 2.0.…”

Section: Introductionmentioning

confidence: 99%

“…The least integrated ones provide with the most diversification opportunities and the most integrated ones provide the least diversification opportunities (Choudhary & Siag, 2015; Diamandis, 2009; Driessen & Laeven, 2007; Palamalai et al, 2013). In fact, these days, the investors are keen in internationally diversifying their portfolios, thereby maximizing their returns and reducing risks (Bodie et al, 1999; Siddiqui, 2009; Tahir et al, 2013; Wong et al, 2004, 2005).…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Through the Lens of Recession 2.0: Diversification Dynamics Between the Leading Asian Stock Markets

Manu

Nayak

Kalra

2021

Vision: The Journal of Business Perspective

View full text Add to dashboard Cite

The focus of this article is to analyse the inter-linkages between eight leading stock markets in Asian continent from the period of July 2011 to February 2018. This period holds relevance as this was the time when Recession 2.0 set in, which adversely affected the developed economies; however, the developing economies withstood the crisis without much of an impact. Co-integration and Granger causality tests were conducted to probe the inter-linkages. Study revealed a positive impact on Asian stock market indices collectively on each of the indexes. The highest number of unidirectional causalities was to KOPSI and NIFTY from rest of the stock indices. Results confirmed that no co-integration relationship existed among the selected indices indicating favourable diversification opportunities. Thus, the study fosters global market participants and policymakers to consider the nitty-gritties of stock market integration so as to benefit from international stock market diversification in the Asian region.

show abstract

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Through the Lens of Recession 2.0: Diversification Dynamics Between the Leading Asian Stock Markets

Manu

Nayak

Kalra

2021

Vision: The Journal of Business Perspective

View full text Add to dashboard Cite

show abstract

Sectoral Integration and Domestic Portfolio Diversification in the Karachi Stock Exchange

Ahmed¹,

Malik²,

Awan³

et al. 2017

LJB

View full text Add to dashboard Cite

This study analyzes sectoral integration among the top ten sectors listed on the Karachi Stock Exchange (KSE), using a market value-weighted index and daily stock price data for 2001–14. Since the literature shows that domestically diversified portfolios outperform globally diversified ones, the study’s results have implications for the construction of well-diversified domestic portfolios among individual and institutional investors. We find that, apart from automobiles and cement, all other sectors listed on the KSE provide good diversification opportunities. The Granger causality test shows that cement, chemicals and banking cause most other sectors uni-directionally, while oil and gas, biotechnology and pharmaceuticals, textiles, and electricity are caused by most other sectors. From a domestic investor’s perspective, the KSE provides reasonable diversification opportunities across different sectors.

show abstract

Interdependence of South Asian & developed stock markets and their impact on KSE (Pakistan)

Cited by 2 publications

References 4 publications

Through the Lens of Recession 2.0: Diversification Dynamics Between the Leading Asian Stock Markets

Through the Lens of Recession 2.0: Diversification Dynamics Between the Leading Asian Stock Markets

Sectoral Integration and Domestic Portfolio Diversification in the Karachi Stock Exchange

Contact Info

Product

Resources

About