Econometric Investigation of DSE＇s Portfolios through Selective Micro and Macro Economic Indicators

This paper examines the impact of the portfolios of Dhaka Stock Exchange （DSE） with corresponding to the selective macro and micro economic indicators of Bangladesh. The microeconomic indicators are Invested Market Capital （1MC） （US$） and the number of Total Enlisted Company （TEC） which have direct and immediate impact on the Stock Turnover Ratio （STR） of DSE and the macroeconomic indicators are Gross Domestic Product （GDP）, Gross National Income （GNI）, Gross Saving （GS）, Gross Inflation （GI）, Deposit Interest Rate （DIR）, and Gross Foreign Investment （GFI） which have indirect and long run impact on DSE portfolios. To investigate the direct impact on DSE＇s turnover ratio, the Cobb-Douglas production function is applied and to investigate the indirect and long run impact, multiple linear regression models are also applied. The estimated results are diagnosed using magnitudes of derivatives, gradient and Wald＇s coefficient restriction with respect to the macro and micro economic indicators.

THE RESTRICTIVELY PRECONDITIONED CONJUGATE GRADIENT METHODS ON NORMAL RESIDUAL FOR BLOCK TWO-BY-TWO LINEAR SYSTEMS

The restrictively preconditioned conjugate gradient （RPCG） method is further developed to solve large sparse system of linear equations of a block two-by-two structure. The basic idea of this new approach is that we apply the RPCG method to the normal-residual equation of the block two-by-two linear system and construct each required approximate matrix by making use of the incomplete orthogonal factorization of the involved matrix blocks. Numerical experiments show that the new method, called the restrictively preconditioned conjugate gradient on normal residual （RPCGNR）, is more robust and effective than either the known RPCG method or the standard conjugate gradient on normal residual （CGNR） method when being used for solving the large sparse saddle point problems.