The impact of main sectors on stock market performance in Malaysia / Idayu Norsidek

• Main Author: Norsidek, Idayu
• Format: Student Project
• Language: English
• Published: Faculty of Business and Management 2015
• Subjects: Investment, capital formation, speculation; Stock exchanges. Insider trading in securities; Stock price indexes. Stock quotations; Kuala Lumpur. KLSE
• Online Access: http://ir.uitm.edu.my/id/eprint/25024/1/PPb_IDAYU%20NORSIDEK%20M%20BM%2015_5.pdf; http://ir.uitm.edu.my/id/eprint/25024/

This paper aims at finding out the impact of Main Sectors on Stock Market Performance in Malaysia. The variables considered are the stock market performance by using Kuala Lumpur Composite Index (KLCI), indexes from oil and gas sector (KLOG), indexes from finance sector (KLFIN), indexes from technology sector (KLTEC) and indexes from real estate sector (KLRE). The sample of this study comprises of 61 observations each of the independent and dependent variables on a monthly basis over 5 years period from April 2009 to April 2014. Methodology used for this study is by using Multiple Linear Regression with time series data from investing site. Thereafter, econometric tests are to be conducted to observe the relationship of the main sectors of stock market variables to the stock market performance in Malaysia. Interactive software package E-view would be used for testing and analysing the data collected. The study is an attempt to investigate the relationship of the main sectors of stock market towards stock market performance in Malaysia. Findings from previous research papers mostly on developed markets indicate that main sectors of stock market do play a significant role in the determination of stock market performance in Malaysia. The results of this research paper would provide us with an indicative view and could form an important basis for investors and policy makers in their investment strategies and policy decisions respectively.