The relationship between Consumer Confidence Index and BIST 50 Index

Abstract

Decisions made by consumers depending on psychological factors affect the incomes of companies and, accordingly, the financial markets. In this study, the causality relationship between consumer confidence index, BIST 50 index and BIST electricity is discussed. In this study, which was conducted with the assumption that there may be a causal relationship between the consumer confidence index and BIST 50 and BIST electricity indices, the causality relationship between the consumer confidence index, BIST 50 index and BIST electricity index was examined with the Granger causality test covering the periods 2012:01-2022:06. As a result of the tests carried out considering the lag lengths, a one-way causality relationship was determined between the BIST 50 index and the BIST electricity index.