SAJMS - South Asian Journal of Management Sciences

Comparison of Equity Markets of SAARC Nations with the Equity Markets European Union Nations

Relationships amongst the different stock markets have previously been examined many times; whereby such studies help market players better understand and grasp the equity markets. This paper is based on the comparison of the Equity Markets of both the SAARC and the European Union nations. Changes within one market (whether good or bad) and the subsequent effects on the other market are both measured and analyzed. The study focuses upon SAARC and European Union markets, since these are two of the largest markets of the world. The study data includes the countries of: Pakistan, India, Bangladesh, Sri Lanka (SAARC Contrives), France, Germany, Portugal, and also the Czech Republic (European Union countries). The trends between the outlined markets, with respect to Closing Share Price (CSP) and Trading Volume (T.V) are analyzed using the Johansen Cointegration Test in this paper while findings of this paper confirmed the presence of a co-movement is between the two market clusters.

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