A study on macroeconomic variables that affect manufacturing index stock prices in Malaysia / Norhisham Mohamed@Salleh

• Main Author: Mohamed@Salleh, Norhisham
• Format: Student Project
• Language: English
• Published: UNIVERSITI TEKNOLOGI MARA KELANTAN KOTA BHARU CITY CAMPUS 2012
• Subjects: Macroeconomics; Stock exchanges. Insider trading in securities; Stock price indexes. Stock quotations
• Online Access: http://ir.uitm.edu.my/id/eprint/41266/1/41266.pdf; http://ir.uitm.edu.my/id/eprint/41266/

This study attempts to examine the relationship between three selected macroeconomic variables and Manufacturing Index stock price. The macroeconomic variables in this research are gross domestic product, inflation rate and exchange rate. Consumer price index was taken as proxy for inflation rate and currency MYR/USD was taken as proxy for interest rate. For the stock price, Manufacturing Index is taken as the proxy. In this study, the researcher used secondary data in order to achieved and complete the objectives of the study. The Multiple Regression Analysis were conducted on the time series of data for 20 years that is from Q1 1991 until Q3 2011 by using SPSS programme which to identify the relationship between stock price indices and macroeconomic variables. From the findings, gross domestic product and inflation rate have significant relationship, whilst only exchange rate has insignificant relationship with Manufacturing Index stock price. The findings also show that GDP has a positive relationship with MI stock price but for CPI and USD/MYR have the negative relationship with MI stock price.