Економічні науки/4. Інвестиційна діяльність та фондові ринки

Polevaya T.V., Kotelevskaya I.P.

Kharkiv State University of Food Technology and Trade, Ukraine

The domestic stock market state estimation with use stock exchange indices

Stock exchange indices are effective tools of analysis and prognostication of prices changes at the securities market. Their publication allows to be well-informed to participants of stock market. Stock exchange indices value is the guideline for making decisions by participants in the relation to the estimation of securities portfolio management efficiency. It causes practical interest to the integral estimation of securities market state and it confirms the actuality of this topic.

The research testifiers that works of domestic and foreign scientists are mostly devoted to the stock market state investigation on the base of the analysis of stock exchange indices evolution. Among these works it’s possible to select works of Basowa I., Maslowa S., Mendrule O., Mirkin G., Opalow O., Yanukayn M. and so on. The noted economist attention mostly concentrates on the problems of stock exchange securities trade intensity and indices of market capitalization of stock platforms researching. Questions of adoption of stock exchange indices as tools of domestic securities market estimation are still actual.

We generalized characteristic features and description of stock exchange indices on the base of their role and value analysis in the market situation estimation (table 1).

Table 1. Characteristic and special features of stock exchange indices use

Characteristic features of indices	Description of the index	Information user
Index as indicator of the economy state	The index must reflect long-term trends economy development demonstrate the difference of levels development in different fields of the industry.	Organs of state regulation of economy, representatives of business, mass media
Index as instrument of analysis and prognostication of the securities market state	The index must reflect the current situation at the market and characterize market fluctuations	Professional participants of securities market, investor
Index as base of price fluctuations hedging at the financial market	The index are used for insurance from the prices risk	Heads of the investment funds
Index as indicator of securities portfolio and guideline at the estimation management efficiency of it	The index provides the possibility of comparison of certain securities portfolio profitability with averaging volume investment portfolios that allows to describe management quality	Investor, professional participants of securities market

Stock exchange indices enter to the system of the economic monitoring of the national economy state next to other economic indicators, that is why it is necessary to consider their functions (fig. 1).

Fig. 1 – Functions of stock exchange indices

There are some restrictions in use of stock exchange indices, namely:

1) indices demonstrate just quantitative changes, but they don’t reflect reasons of these changes;

2) indices require the periodic corrections of components which are used for their calculations;

3) it is possible to manipulate by indices, their values can be increased or reduced artificially [1]

The price PFTS index is the main indicator of domestic securities market development. This index is formed by the volume of issue and it is accessible for the wide circle of investors. The «index basket» of PFTS consists of twenty elements, which represent seven directions. They are fuel and energy system and metallurgy, banking system, information and telecommunication sphere, engineering and chemical industries [2].

Beginning from 1997 up to how maximum index of PFTS was measured 15.01.2008 – 1208,61. Maximum volume of sales was recorded 13.11.2008 – 3,08 billion hrn [3]. The graph of PFTS index dynamics from 16.09.2008 till 16.02.2010 is presented in figure 2. Graph date testify that maximum value was recorded 16.10.2009 – 649,85.

Fig. 2 – PFTS index dynamics

The value of PFTS index from 01.02.2009 till 01.02.2010 was increased 2.7 times (table 2). Analysts explain such increase by speculative manipulations of securities prices, especially stock of big companies [3].

Table 2. Domestic stock exchange index dynamics

PFTS	2009											2010
	February	March	April	May	June	July	August	September	October	November	December	January	February
Average value	241,87	207,82	301,81	412,66	432,03	401,28	446,76	487,62	613,34	620,67	591,48	611,85	660,56

Table date testify that during 2009 – beginning 2010 the tendency of increase of domestic PFTS index value was observed that is explained by the change of the structure of demand and supply of securities of stock market and fluctuation of stock prices.

Thus, stock exchange indices play an important role in estimating complex market processes and tendencies of financial sector development, that is why it is expedient to implement them as a tool of analysis of the state of domestic market securities in the future.

Reference literature:

1. Басова, І. Цінні папери: ринок, операції, облік [Текст] / І. Басова, Н. Петрова. – Х. : Фактор, 2009. – 624 с.

2. Маслова, С.О. Фінансовий ринок [Текст] / С.О. Маслова, О.А. Опалов - 4-е вид. – К. : Каравела, 2008. – 288 с.

3. Статистична інформація щодо біржових індексів [Електронний ресурс]. – Режим доступу: <http://expert-asset.com.ua/index.php?option=com_content&task=view&id=79&Itemid=122#>.