Regional Stock Research Articles

Analysis of the effect of Regional Stock Market on the Jakarta Composite Index using Markov Regime Switching Regression

Purpose: In the current era of information, global stock market interconnections significantly influence investment decisions. Changes in one market rapidly affect others. The co-movement of stock markets presents challenges and opportunities for investors, whereas volatility spillovers complicate risk management and investment strategies. Research Methodology: This study examines the influence of the Nikkei 225, Straits Times Index, and Shanghai Composite Index on the Jakarta Composite Index across the pre-pandemic, pandemic, and post-pandemic phases. Results: Utilizing the hidden Markov model with regime-switching regression, this study identifies changes in market behavior due to economic shifts during the pandemic, revealing two regimes: synchronization and desynchronization. Limitations: Pre-COVID-19, the Jakarta Composite Index shows strong synchronization with the Nikkei 225 and Straits Times Index, while the Shanghai Composite Index has an insignificant impact. During the COVID-19 pandemic, frequent desynchronization occurred due to high uncertainty and volatility, with only the Straits Times Index significantly influencing the Jakarta Composite Index. Post-pandemic, synchronization between the JCI and regional markets strengthened again. This study highlights the consistent influence of the Nikkei 225 and Straits Times Index, while the Shanghai Composite Index remains insignificant. Contributions: This study contributes significantly to the understanding of regional stock market relationships and offers valuable insights for academia and practice.

The nexus between mineral, renewable commodities, and regional stock sectors during health and military crises

We examine the return and volatility spillover dynamics and their portfolio implications among regional stock super-sectors, mineral (Energy, Industrial, and Precious Metals), and renewable (Agricultural and Livestock) commodities. To this end, we apply the time-varying parameter-vector autoregressive (TVP-VAR) model to analyze the intersectoral-commodity linkages separately in four major regions (Europe, Eastern Europe, Asia Pacific, and North America). The empirical results show that stock market sectors dominate the spillover transmission mechanism, while commodities emerge as net recipients of shocks. Moreover, we find heterogeneous connectedness patterns between stock sectors and commodities, predominantly running from the Energy and Basic Resources stocks to the Energy and Industrial Metals commodities. Thus, energy commodities play a more vital role as a spreader of volatility shocks amid the COVID-19 pandemic and the wake of the Russia-Ukraine war. The optimal portfolio weights reflect two episodes of “flight to safety” towards all commodities except Energy, triggered by the pandemic and the war, as investors decrease their fund allocation to stocks in favor of commodities.

The Impact of the Cryptocurrency Market on Islamic vs. Conventional Stock Returns: Evidence from Gulf Cooperation Council Countries

The rapid rise and widespread global adoption of cryptocurrencies in recent years has fundamentally transformed the international financial landscape, with digital assets increasingly being recognized for their potential to influence the stability and performance of traditional capital markets. Against this backdrop, this study aims to empirically investigate the impact of cryptocurrency returns on Islamic vs. conventional stock returns in Gulf Cooperation Council (GCC) countries. The salient distinctions between Islamic and conventional stock markets include fundamental differences in principles, investment allocations, and risk profiles, underscoring the importance of examining the impact of cryptocurrency returns on these distinct equity segments. Daily data were collected from stock indices in five GCC countries over the period 2016–2019, including two sub-periods: before and after the 2017 crypto crash. Pooled OLS, fixed effects, random effects, and generalized linear models (GLMs) were used to analyze the data collected during the study. With the GCC increasingly focusing on cryptocurrency markets, there is growing concern about these markets’ potential impact on regional stocks. This study addresses the important questions of whether the impacts of the cryptocurrency market on Islamic vs. conventional stock markets differ throughout the GCC region and how these impacts have evolved since the crypto crash period. The findings reveal that cryptocurrency returns had a negative impact on both GCC Islamic and conventional stock market returns for the full sample period (2016–2019), and the negative effect was far more pronounced for conventional stocks. For the two sub-periods before and after the crash, only the cryptocurrency market and conventional GCC stocks remained negatively correlated, while the cryptocurrency market and the GCC Islamic stock markets became uncorrelated. Thus, for the calmer sub-periods before and after the crypto crash, the rise in cryptocurrency returns may have enticed GCC investors away from conventional stocks, perhaps resulting in a decline in their investment in these stocks. Meanwhile, those who invest in Islamic stocks may not be exposed to this temptation.

Genetic structuring and conservation of sockeye salmon on the Asian coast of the North Pacific: identification of regional stock complexes

Genetic structuring and conservation of sockeye salmon on the Asian coast of the North Pacific: identification of regional stock complexes

Choice between Sustainable versus Conventional Investments—Relative Efficiency Analysis from Global and Regional Stock Markets

We use the daily data from 1 October 2010 to 1 March 2021 on the stock prices of several global, regional, and country-specific ESG indices of the Dow Jones Sustainability Index family (DJSI) and MSCI family to analyse the relative performance of sustainable indices (ESG) and corresponding conventional benchmarks. In terms of classic risk and return characteristics and modern portfolio metrics, we report mixed evidence with some sustainability indices marginally outperforming the traditional benchmarks and others staying at parity. Regionally, the evidence is heterogeneous; the Pan Arab, the Middle East (including Israel), the United States, Emerging Markets, and Europe indices reported a slightly superior performance and those belonging to Asia Pacific, Emerging Africa, and Latin America marginally underperformed compared to their conventional counterparts. The findings of this study imply that sustainable investments appear to be an encouraging investment option, although their progress has not been substantial. For an appreciable outperformance of sustainable investments, a more conducive regulatory framework should be established, including robust incentivizing policies concerning tax rebates or low capital costs.

Tracking Error Determinants in Mutual Funds: The Case of Regional Stock Exchange in West Africa

The BRVM (Regional Stock Exchange in West Africa) mutual fund (MF) market has grown rapidly in recent years. The performances obtained have allowed specific financial market shares to be included in the MSCI Frontier Market Index. This promotion facilitated the visibility of the BRVM to international investors. This study is part of this dynamic and evaluates the tracking errors of MF and their determinants. Results show that entry and exit fees, management fees, strategies, valuation frequencies, and size are determinants of the tracking errors of BRVM MFs.

Integrating the US Caribbean Reef Fish Visual Census into fishery stock assessments

The United States Caribbean Reef Fish Visual Census (RVC) is a fishery-independent survey of the coral reef fish community, comprised of hundreds of species, designed to provide quantitative information for data-poor fisheries to support regional stock assessments. The Caribbean RVC, implemented in 2014 as part of the National Coral Reef Monitoring Program (NCRMP), uses a probabilistic stratified random sampling design capitalizing on the strong mean-variance relationship of population abundance dependent on hardbottom habitats and depths. Here we highlight RVC data for queen triggerfish in Puerto Rico, where survey precision improved from CVs of 20.6% in 2014 to 12.6% in 2021, which produced accurate and cost-effective estimates of key assessment metrics like size- structured relative population abundance and biomass. We estimated a relatively stable exploited-phase average population abundance for 2014–2021 at 2.3 million queen triggerfish with a biomass of 1246 metric tons. To support stock assessments using "statistical catch at age" models, we generated a 2001–2021 time series of several population metrics by a statistical conversion of spatially-restricted, pre- NCRMP data to the RVC frame. To cross-check assessment modeling, we combined 2014–2021 RVC results with life history demographics in an alternative length-based risk analysis (LBRA) model to evaluate stock sustainability consequences using two lifetime growth scenarios. LBRA models indicated low overfishing risks. We concluded that only a few quality fishery-independent surveys are needed to obtain understanding of stock sustainability status, and that RVC not only provides reliable data for single-species stock assessments, but also for design evaluation of marine protected areas and ecosystem-based fishery management.

Quantitative fishery assessment in tropical waters: Stock dynamics and strategy options

This paper explores the possible options for quantitative fishery stock assessment in tropicalwaters and is composed of four layers viz., concepts, methodologies, data and indicators.The concept promotes the fundamental theory that has been popular in research on stockdynamics, including the possibility of combining it with various doses of intrinsicallybiological information, from individual fish to regional stocks. After reviewing the concepts,tools and their evolution, an attempt has also been made to propose a few guidelines as thebest ways to approach stock assessment and formulate input control or output regulationstrategies in the most pragmatic yet scientific manner, thereby ensuring minimal impact onthe fishery, fishers and stocks in the medium term. Keywords:Bayesian approach, Capture fisheries, Fish stockassessment, Models

ANALYSIS OF REGIONAL STOCK MARKETS FOR INVESTMENT & DIVERSIFICATION PERSPECTIVE: EVIDENCE FROM PAKISTAN, CHINA & INDIAN STOCK MARKETS

The academic ramification of research is that it is one of few that provides a comprehensive analysis of regional market cointegration. One of this study methods is application of pairwise cointegration that is useful for figuring out strength of long-term link amid two variables. In order to reap benefits of diversity, it is better to invest locally rather than traveling to another region, which is why this study investigates new options for academicians to examine long-term interaction between regional stock markets. Study employs most efficient pairwise cointegrated approach to illustrate precise link amid two variables. Daily data of these countries' stock market indices from 2002-2018, used to study stock market co-movement/co-integration. The statistical tests were applied like Dickey Fuller test, regression & co-variance. Pairwise co-integration is examined after confirming combine co integration of three markets. Results show that there is no cointegration amid stock markets of Pakistan China & India. So, Pakistani investors have chance to participate in other two markets at a time when it appears to be lucrative investment portfolio.

Population genetic diversity of coho salmon (Oncorhynchus kisutch Walbaum) in the Asian part of its range based on the results of microsatellite loci analysis

Polymorphism of 10 nuclear microsatellite loci in coho salmon populations in the Asian part of the range was studied for the first time. Three genetically distinct regional stock complexes were identified: Kamchatka, northern part of the Sea of Okhotsk and Sakhalin. It was shown that all populations, regardless of their geographic location, are characterized by a high level of genetic polymorphism.

АНАЛИЗ ВЛИЯНИЯ ИНСТРУМЕНТОВ ФОНДОВОГО РЫНКА НА РАЗВИТИЕ РЕГИОНОВ

This article examines the impact of the stock market on the economic development of the regions. The current economic situation is more atypical, but nevertheless creates a space of opportunities for the use of stock market instruments in order to ensure regional development. Also, the impetus for the development of the regional stock market was the massive influx of private investors to the exchange, whose degree of confidence in the securities of regional issuers distinguishes such securities from all those on the market.

Pengaruh bursa saham Regional Asia Tenggara 5, Tiongkok dan USA terhadap IHSG

The 2018–2022 period is one of global economic uncertainty due to the US trade war with China and the economic recession due to the COVID-19 pandemic. These factors put pressure on the financial sector and influence investment behavior. This research aims to determine the influence of five regional stock exchanges in Southeast Asia, China, and the USA, domestic interest rates, and inflation on the IHSG, then compare the periods during the COVID-19 pandemic shock. The research method uses the Vector Error Correction Model (VECM). The analysis results show that the Southeast Asia regional stock exchange has a significant influence in the long term but no influence in the short term. An interesting finding in this research is that several stock exchange variables and domestic interest rates had different influences before and during the shock of the COVID-19 pandemic.

Exploring crisis-driven return spillovers in APEC stock markets: A frequency dynamics analysis

This study investigates return spillovers in APEC region stock markets influenced by three major crises (the global financial crisis (GFC), the COVID-19 Pandemic, and the Russia- Ukraine conflict). The Diebold and Yilmaz (2012) approach with the Baruník and Křehlík (2018) methodology is employed. The results indicate that the spillover effect is crisis-sensitive, time-varying, and frequency-dependent across the APEC countries' equity markets. The GFC had the most significant spillover effect, followed by COVID-19 and the Russia-Ukraine conflict. While New Zealand, Vietnam, and the Philippines are the net risk recipients, the larger economies of the US, Canada, and Mexico are net risk contributors. Moreover, we analyzed return spillover across three different frequencies for three sub-periods, revealing that the GFC dominates short-term spillovers (five days/one week), while COVID-19 dominates long-term (above five days). Results reveal a fascinating aspect of hedging, highlighting that its costs are higher over the long term than the short term. Interestingly, hedging proves to be more effective over a long time, particularly during crises, thus emphasizing the crucial role played by the time-investment horizon factor.

Morphometric variations of Kawakawa (Euthynnus affinis Cantor, 1849) in Malaysian and Yemeni waters

Abstract. Binashikhbubkr K, Setyawan AD, Naim DM. 2023. Morphometric variations of Kawakawa (Euthynnus affinis Cantor, 1849) in Malaysian and Yemeni waters. Nusantara Bioscience 15: 269-278. Euthynnus affinis Cantor, 1849 (Kawakawa), a small epipelagic tuna that migrates, is one of the most commercially significant tunas in Indo-Pacific subtropical and tropical waters. Unfortunately, there is a lack of knowledge on the region's stock structure and management of the particular migratory species. The present investigation aimed to distinguish body shape differences among 20 populations of E. affinis across Malaysian and Yemen coastal waters. A total of 416 specimens of E. affinis were sampled from five central geographic regions: the South China Sea, Straits of Malacca, Sulu Sea, Celebes Sea, and the Arabian Sea. Multivariate analyses, such as Principal Component Analysis (PCA), Discriminant Function Analysis (DFA), and Cluster Analysis (CA) of 12 morphometric variables, were conducted to differentiate 20 populations of E. affinis. The findings revealed significant differences in the body form among 20 populations. Morphological homogeneity was observed among populations from Peninsular Malaysia and Malaysian Borneo (Sabah and Sarawak). As expected, Yemen's (Mukalla City) populations were clearly segregated and formed a separate cluster. The highest percentage of correctly classified specimens (100%) came from populations in Pulau Tenggol (Terengganu) and Kukup (Johor). In contrast, the highest percentage of misclassified specimens (100%) came from populations in Kota Kinabalu (Sabah), Bintawa (Sarawak), Lumut (Perak), and Endau (Johor). Based on the Mahalanobis distances, hierarchical cluster analyses revealed that 20 populations of E. affinis could be clustered into three distinct groups. This is the first report on E. affinis from Peninsular Malaysia, Malaysian Borneo (Sabah and Sarawak), and the waters of Yemen using morphometric techniques.

Movement pathways and habitat use of blue sharks (Prionace glauca) in the Western Mediterranean Sea: Distribution in relation to environmental factors, reproductive biology, and conservation issues

The blue shark (Prionace glauca), a highly migratory and wide-ranging shark, has been classified as Critically Endangered in the Mediterranean Sea by the International Union for Conservation of Nature since 2016 due to overfishing. Surprisingly, basic information on its biology and ecology, essential for its conservation, remains unknown, and its regional stock has not been assessed. A multi-year large-scale telemetry tagging programme was implemented to fill these gaps. A total of 39 blue sharks were equipped with satellite tags in three areas of the Western Mediterranean, and their movements and home ranges were examined by sex and size class. Their distributions and habitat preferences across seasons were identified using satellite-based environmental data. Tagged sharks were capable of long-range movement between distant regions, but they did not move neither towards the Eastern Mediterranean basins nor the North Atlantic. We identified the Gulf of Lions as the mating, parturition and nursery grounds. We demonstrated that sharks can use the general geostrophic current system for large movements. Our results support the current stock boundary in the Mediterranean based on international conventional tagging programmes and genetic studies, but the absence of connectivity between the two Mediterranean basins and the North Atlantic basin suggests that they have distinct stocks. Our findings provide critical input for developing effective conservation and management plans for this cosmopolitan species. For the first time in the Mediterranean, this study provides insights into the movement patterns of blue sharks and their habitat preferences.

The Emergence of Regional Industrial Policy in Britain: The Case of Wales, 1939 to 1947

From the 1940s to the 1970s, British governments steered manufacturing businesses to peripheral regions designated as needing more employment. This approach was delivered through a Regional Policy that deployed industrial location controls and financial incentives. Effectiveness varied over time but was dramatic in the mid-1940s, when it boosted the regional stock of secondary manufacturing to the extent that its legacy remains visible today. The literature describes how this Regional Policy was a peacetime policy, albeit one formulated during the war. This article, however, proposes that the most successful phase of Regional Policy was an extension of wartime policies governing regional manufacturing businesses producing munitions. It uses a case study of Wales to make two arguments. One is that the Regional Policy associated with the postwar period began to be implemented before the war had ended. The other is that the Board of Trade pursued the policy through repurposed wartime governance mechanisms within an economy that remained subject to onerous state controls. The case outlines a short but consequential burst of assertive state involvement that shaped business activity throughout much of regional Britain, echoing Philip Scranton and Patrick Fridenson’s arguments concerning “the state always being in” given its role in shaping markets, business behavior, and regulations.

Regional Stock Market Efficiency at Weak Form after the Covid-19 Vaccination Approval

The contradiction in the previous results provides a deep avenue for researchers to take more interest in the stock market efficiency and conduct more studies. Therefore, the study objective is to decide whether the Arab Federation of Exchanges (S&P AFE 40 Index Return) is efficient at weak-form based on normality and random walk hypothesis using several statistics such as the Jarque-Bera test as a parametric technique to check the normality and the Augmented Dickey-Fuller test as a parametric method to test the random walk hypothesis. Moreover, the results are reinforced by six non-parametric techniques to test the normality hypothesis such as the Kolmogorov-Smirnov test, Shapiro-Wilk test, Lilliefors test, Cramer-von Mises test, Watson test, Anderson-Darling test, and four non-parametric techniques such as run test, variance ratio test, Phillips-Perron test, and autocorrelation test to check the random walk hypothesis for daily data after the Covid-19 vaccination program over the period from 31 March 2020 to 31 March 2023, the results of all tests indicated that the market index return is non-efficient at the weak form, and concluded that the investors could analyze the Arab Federation of Exchanges’ past stock prices or other historical data as opportunities to predict future stock prices and earn unusual profits; therefore, Policymakers may further improve access to information to prevent investors from having opportunities to predict stock movements to obtain abnormal returns.

Isotopic signatures induced by upwelling reveal regional fish stocks in Lake Tanganyika

Lake Tanganyika’s pelagic fish sustain the second largest inland fishery in Africa and are under pressure from heavy fishing and global warming related increases in stratification. The strength of water column stratification varies regionally, with a more stratified north and an upwelling-driven, biologically more productive south. Only little is known about whether such regional hydrodynamic regimes induce ecological or genetic differences among populations of highly mobile, pelagic fish inhabiting these different areas. Here, we examine whether the regional contrasts leave distinct isotopic imprints in the pelagic fish of Lake Tanganyika, which may reveal differences in diet or lipid content. We conducted two lake-wide campaigns during different seasons and collected physical, nutrient, chlorophyll, phytoplankton and zooplankton data. Additionally, we analyzed the pelagic fish–the clupeids Stolothrissa tanganicae, Limnothrissa miodon and four Lates species–for their isotopic and elemental carbon (C) and nitrogen (N) compositions. The δ13C values were significantly higher in the productive south after the upwelling/mixing period across all trophic levels, implying that the fish have regional foraging grounds, and thus record these latitudinal isotope gradients. By combining our isotope data with previous genetic results showing little geographic structure, we demonstrate that the fish reside in a region for a season or longer. Between specimens from the north and south we found no strong evidence for varying trophic levels or lipid contents, based on their bulk δ15N and C:N ratios. We suggest that the development of regional trophic or physiological differences may be inhibited by the lake-wide gene flow on the long term. Overall, our findings show that the pelagic fish species, despite not showing evidence for genetic structure at the basin scale, form regional stocks at the seasonal timescales. This implies that sustainable management strategies may consider adopting regional fishing quotas.

Analytical review of the results of salmon fisheries in Kamchatka Territory in 2018–2022 (fore- casts, fisheries, stocks). Communication 1 (Pink salmon, Chum salmon)

The paper considers results of the analysis of salmon fisheries in Kamchatka Region in 2018–2022 (for pink salmon 2017–2022). The material analyzed includes commercial fishery statistics data presenting information on annual, seasonal and daily catches of pink salmon and chum salmon for the main units of the regional stocks. The main patterns are shown and critical points are outlined to justify predictions of the runs/catch of spawners. In addition, multi-year estimates of the variability of spawning stocks of pink salmon and chum salmon with respect to spawning escapement targets are presented.

Analytical review of the results of salmon fisheries in Kamchatka Territory in 2018–2022 (forecasts, fisheries, stocks). Сommunication 2 (sockeye salmon, coho salmon, chinook salmon)

The paper considers results of the analysis of salmon fisheries in Kamchatka Region in 2018–2022. The material analyzed includes commercial fishery statistics data presenting information on annual, seasonal and daily catches of sockeye salmon, coho salmon, chinook salmon for the main units of the regional stocks. The main patterns are shown and critical points are outlined to justify predictions of the runs/catch of spawners. In addition, multi-year estimates of the variability of spawning stocks of sockeye salmon, coho salmon, chinook salmon with respect to spawning escapement targets are presented.