The relationship between bist industrial index and exchange rate and oil prices

With globalization, stock exchanges have become vulnerable to international events based on political, economic and political factors. The reaction of financial markets to these developments may cause changes in stock market indices. Not only these developments but also many macroeconomic factors (exchange rates, oil prices, inflation, interest rates, etc.) affect stock market indices. Stocks of companies operating in the stock market are directly or indirectly affected by global and national developments. As a result of these effects, institutional and individual investors have to be more careful in purchasing stocks traded on stock exchanges. The aim of this study is to analyze the relationship between BIST Industrial Index, exchange rate and oil prices. In this study, the relationship between BIST Industrial Index, exchange rate and oil prices is analyzed by ARDL Bound Test using 246 monthly data for the period 2003:M01-2023:M06. According to the findings of the analysis, there is a statistically significant relationship between BIST Industrial Index, exchange rate and oil prices. It is concluded that there is a long-run relationship between BIST Industrial Index and the variables. The study consists of three sections. The first section provides information about the index concept and stocks. In the second section, the concepts of foreign exchange and oil are explained. In the third section, the literature review, data set and methodology are discussed and finally the results of the analysis are presented.