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Factors Affecting Stock Price Movements

As we know, stock prices always change every day, even every second when the stock market is open. Many investors wonder why stock prices always change, what factors influence the movement of stock prices either up or down. This article will thoroughly discuss the things that cause changes in stock price movements. The share price is determined by the attraction between the forces of buyers and sellers, in other words, supply and demand. Therefore, the stock price always changes, according to this attractive strength. When demand increases, stock prices tend to rise. Conversely, when the supply increases, the share price tends to fall. Want to learn more about the investment movement? You can visit our website at http://www.forexkenya.net/olymp-trade-kenya.html.

The share price usually reflects the company’s performance. When the company’s performance is poor, usually the stock price goes down. Conversely, if the company’s performance improves, the stock price will also increase. What is meant by company performance is broad in scope, starting from the performance of financial statements, company sales, new product launches, news about the company, the impact of related regulations on the company, problems within the company, corporate actions such as dividend distribution, mergers, acquisitions, and so on. etc. Share prices are influenced by the strength of the performance of each industrial sector. Usually, a bright industrial sector also has an impact on the performance of companies in that sector. So that the stock price in that sector is on average higher than stocks in other sectors.

The economic condition of a country and its relations with other countries also affect the country’s stock exchange. When the country’s economic conditions are bright, purchasing power increases, the stock market is also booming, and the average stock price tends to rise. Conversely, when the country’s economy is down, it is usually reflected in weaker stock prices. Therefore, the announcement of the country’s economic policies and indicators such as interest rates, inflation, and the trade balance will be observed by stock investors. The sentiment of market players also influences the movement of stock prices. Optimistic and euphoric market players will usually push up share prices. On the other hand, panic market players will push share prices down.