Evaluation the effect of investment instruments on ISE-100 index

This study aims to examine the effects of alternative investment instruments to equity index as gold prices, exchange rates and interest rates on stock prices traded on ISE100. VAR model based on error terms was created since the long-term relationship between the variables was determined by Johansen cointegration test and Granger Causality Analysis was applied to determine the causality between the variables. As a result of the analysis; bi-directional causality between Gold-ISE100, Interest Rate-ISE100; one-way causality between Exchange Rate-ISE100 and Gold-Interest Rate has been detected. As a result of the impact response analysis and variance decomposition, it was determined that the order of alternative investment preferences to ISE100 index as interest rate, exchange rate and gold prices