The impact of crude oil price and gold price on stock index : evidence from Malaysia / Nur Hanizah Mazlina Azmi

• Main Author: Azmi, Nur Hanizah Mazlina
• Format: Student Project
• Language: English
• Published: 2015
• Subjects: Finance and cycles. Financial crises. Convergence (Economics); Economic forecasting; Consumers. Consumer demand. Consumption; Environmental policy and economic development. Sustainable development. Environmental management
• Online Access: https://ir.uitm.edu.my/id/eprint/69747/1/69747.pdf; https://ir.uitm.edu.my/id/eprint/69747/

This paper intends to examine the relationship between commodities price such as crude oil price and gold price and stock index of one country, which is Malaysia. Crude oil and gold are example of commodities that are very crucial for those developing or emerging countries. For example Malaysia that is one of the developing countries that depend on the income from commodity export. Meanwhile, as a benchmark or indicator to measure a country financing health and economic strength is the stock market of the country. The purpose of this study is also to investigate whether there is any significant relationship between crude oil price and gold price with Malaysia stock price. Thus, this study will use the monthly data of two commodities that are crude oil price and gold price as independent variables. Stock price of one country that is Malaysia will act as the dependent variable. In this study, time series analysis will be adopted namely Granger Causality to test the significance of relationship between two commodities with stock price.