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ISE REVIEW

Abstract
This paper examines the effect of Decree No. 32 of August 11, 1989 on the stock price distributions of an emerging stock market: Istanbul Stock Exchange. After this date the stock market removed the restrictions on foreign investors. It is shown that the mean of stock price changes has stayed the same, but the variances changed significantly with this government decision. The variances of the majority of the stock prices (36 out of 56) increased after August 11, 1989. In both periods the price change distributions are nonnormal and highly leptokurtic.

An Analysis of the “Day of the Week Effect” on the Istanbul Stock Exchange
Kivilcim Metin, Gülnur Muradoglu, Bilgehan Yazici

Abstract
This paper examined the weak form of efficiency by using the random walk test and the day of the week effect at Istanbul Stock Exchange (ISE) during the period 4 January 1988 - 27 December 1996. The random walk model is rejected for all periods under consideration and test results provide an evidence in favour of the rejection of a weak form of efficiency. Testing for the day of the week effect resulted that both Friday and Monday effects are observed and thus, it is concluded that market is inefficient.

Abstract
Using a vector-autoregression (VAR) approach, this paper investigates causal relations and dynamic interactions among stock returns, inflation, interest rates, and real activity in Turkey. Major empirical findings can be summarised as follows: (1) in the VAR system, stock returns explain little variation in inflation, although interest rates explain a substantial fraction of the variation in inflation; (2) inflation explains little variation in real activity while it explains a substantial fraction of the variation in stock returns, and (3) stock returns do not appear to explain real activity. All these findings indicate that stock exchange market in Turkey does not offer a perfect hedge against inflation.

Abstract
The main public facts are homogeneous inside of each nation. The financial highlights describing each of the country economical conditions and the resistance power against expected and unexpected fluctuations would change homogeneity in specific situations. The nation is heterogeneous in the case of critical evaluations and expectations. Because of that reason analytical consideration changed dramatically from country to country. The main financial phenomenon like book-market equity, size effect, E/P and leverage is valid for all national capital markets. But the applications of these concepts are different from one country to another. The attitude definition of companies is homogeneous in each nation, but it is heterogeneous in multi-national applications. Although most of the phenomenon is transparent enough to be a guiding light for all nations but, the applications of these are specific and unique to each nation.. Company profile could be clarified using its fundamental financial indicators definitely. The accepted company profile definition high performance and low performance cases are searched for two different time intervals such as long term and short term. The short term and long term high / low performance company definitions are designed separately. The performance evaluation regarding to investors buying or selling decisions in ISE concluded that high performance companies have a definite preferences for taking positions of any common stock.

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