The effect of alternative investment tools on the stock prices: a comparative analysis based on BIST 's sectors

When investing, investors want to minimize the risk they are charged from one side and maximize their return from the other side. In general there are four options for investment. They can buy stocks as well as choose alternative investment instruments such as foreign exchange, gold and interest. In this study, the effects of alternative investment instruments on share price are analyzed by time series, based on the BIST sectors. Monthly data for the period January 2004 - June 2017 were used in the study. Five models were created to represent the sectors in BIST. In the study, sectors in BIST as dependent variables, exchange rate, gold price and interest rate as independent variables are considered. In addition, the 2008 global crisis was taken into account with the help of the dummy variable. As a result, it has been determined that alternative investment instruments have a negative effect on stock prices in all sectors. However, the effect of gold price was not statistically significant. From investment instruments where significant effect is determined, it has been determined that the foreign exchange rate affects the stock price more than the interest rate. It is also seen that this effect is mostly in BIST Financial Index and at least in BIST Service Index.