The determinants of stock market performance: evidence from Malaysia/ Siti Nur Syazwani Azmi

• Main Author: Azmi, Siti Nur Syazwani
• Format: Thesis
• Language: English
• Published: 2018
• Subjects: Macroeconomics; Interest rates; Stock exchanges. Insider trading in securities; Stock price indexes. Stock quotations
• Online Access: https://ir.uitm.edu.my/id/eprint/58039/1/58039.pdf; https://ir.uitm.edu.my/id/eprint/58039/

This paper is to examine the macroeconomics variables toward stock market performance in Malaysia. The dependent variable is a stock market performance (proxy by KLCI) and the independent variables are inflation rate, trade openness, interest rate, money supply, exchange rate and foreign direct investment. The period of study is in between 1984 until 2017. The yearly data used in the analysis. Hence, the objective of this research is to examine the factors that affect the stock market performance in Malaysia during 1984 until 2017. Time series data approach be used to test the relationship of macroeconomics towards the performance of the stock market in Malaysia. It is expected that the trade openness has a significant positive relationship with the stock market development. On the other hand, inflation rate, money supply, interest rate, exchange rate and foreign direct investment have a significant negative relationship with the stock market performance.