Abstract:

Aim of this study is to investigate the forecasting ability of consumer confidence index for ISE financial sector stock returns Regression analysis method is employed In this context stock returns of 28 financial sector companies are used as dependent variables for the period that spans from February 2002 to June 2005 Change in CNBC E Consumer Confidence Index and three control variables are used as independent variables Control variables are size premium value premium and ISE GDS Index returns Analysis results suggest that consumer confidence index is a significant factor for majority of the financial sector stocks Using control variables has not altered those results Key Words: Consumer confidence index ISE financial sector companies stock returns

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