Özet:

Stock prices are affected by many variables such as capital flows and large number of macroeconomic indicators. Capital flows are most helpful when the magnitude of those flows is steady and stable. Theoretically, the international capital flows such as foreign direct and portfolio investment has contribution to influence national economic performance positively. This study attempts to explain the effects of macroeconomic variables such as interest rates (MVFO), US dollar parity (DLAK), gold prices (ALTN) and capital flows such as foreign direct investment (DYYT), foreign portfolio investment (PRTY) on ISE-100 index using the 370 weekly time series data between 07.01.2005 to 03.02.2012. The empirical results of Prais-Winston Regression Analysis show that US dollar parity (DLAK), gold prices (ALTN) and foreign portfolio investment (PRTY) play unambiguous role on ISE-110 index.

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