Factors affecting share price of cement industry: a study on cement companies of DSE

Abstract

This report is about the „Factors affecting the share price of the cement industry: A study on the cement companies of DSE.‟ The objective of this study is to analyze the factors influence in determining the share price of the listed cement companies in DSE. The study analyzes the share price movement of the factor specific time period. The factors are mainly categorized in four broad categories such as: dividend, company, country and global. Therefore, the factors included: Dividend Announcement Date & Payout Amount, Disclosure of News, Sharp Movement of Market Index, and High Fluctuation of Exchange Rate against USD. After thorough analysis the study reveals that the most influential factors contributing to the price movement of the listed cement companies are sharp movement of market index as well as the disclosure of news whereas dividend and currency exchange rate did not affect that much surprisingly. It was also found that the theoretical perspectives regarding the stock market are often surpassed by different stock market volatility variables due to the inefficiency of the existing capital market. Recommendations like decreasing the news circulation time, proper monitoring system, awareness were made lastly to minimize the inefficiency and to attract more educated investors to benefit the market in the long term.