Publication detail

Central Eastern and South Eastern European Markets Macro-Fundamental Analysis

Author(s): PhDr. Oliver Polyák , Jitka Poštulková
Type: IES Working Papers
Year: 2017
Number: 17
ISSN / ISBN:
Published in: IES Working Papers 17/2017
Publishing place: Prague
Keywords:
JEL codes:
Suggested Citation: Polyak O. (2017). "Central Eastern and South Eastern European Markets Macro-Fundamental Analysis” IES Working Paper 17/2017. IES FSV. Charles University.
Abstract: A type of fundamental analysis focusing on broad economic factors that affect the stock market as a whole or industry groups of securities, also known as the macro-fundamental analysis, is the practice of evaluating the overall performance of the economy, its impact on industry groups and finally down to specific companies in the industry groups. As such, macro-fundamental analysis is broadly accepted as a critical tool to analyze and potentially predict the stock price development There has been a lot written about the cointegration and causality links between the macroeconomic factors and stock indices of the Western European markets. On the contrary, not so much has been researched about these links when it comes to the European emerging markets. The aim of this paper is thus to examine such relationships in case of selected Central and South-Eastern European countries, collecting the latest data and using a broader sample of macroeconomic indicators. Our findings reveal several pairwise short-run causal impacts between studied macroeconomic indicators and stock indices. Moreover, according to our results, all CEE&SEE stock markets under consideration may potentially be in violation of market efficiency.
Downloadable: wp_2017_17_polyak

Partners

ČSOB
Deloitte
McKinsey & Company

Sponsors

CRIF