Exchange rate changes and consumer index sector: the case of unpegging and ITS influence on The Bursa Malaysia / Azma Haili S.Baharuddin

• Main Author: S.Baharuddin, Azma Haili
• Format: Thesis
• Language: English
• Published: 2005
• Subjects: Interest rates; Stock exchanges. Insider trading in securities; Stock price indexes. Stock quotations
• Online Access: https://ir.uitm.edu.my/id/eprint/66036/1/66036.pdf; https://ir.uitm.edu.my/id/eprint/66036/

The study mainly focuses on the relationship between the stock prices with the exchange rates. The study provides a clear view of the actual situation of the Malaysian stock prices after the unpegging, includes the review on the stock prices situation and four differences of country exchange rates. In addition, the study also focus on the relationship between the stock prices(as dependent variables) in the Consumer Sector from the Second Board in Bursa Malaysia and the exchange rates (USS,SGD, YEN AND GBP). The study analyzes the data from the 21 July 2005 to 22 September 2005 on the daily basis. The study then examines the influence, if any, the appreciation of Ringgit Malaysia on the movement of stock prices after unpegging. There are two types of method to analyze the data; multiple and simple linear regression. For the multiple 1linear regression, the study found that the relationship between stock prices and exchange rates only exists for USS but not for SGD, YEN or GBP. Then, through the simple regression, the study found that no relationship exists between stock prices and exchange rates for USS, SGD, YEN and GBP IV