The consequence of volatility in commodity trading prices towards performance of Malaysian Stock Market (KLCI) / Risha Zulaikha Abdul Razak

• Main Author: Abdul Razak, Risha Zulaikha
• Format: Thesis
• Language: English
• Published: 2022
• Subjects: Kuala Lumpur. KLSE
• Online Access: https://ir.uitm.edu.my/id/eprint/96041/1/96041.pdf; https://ir.uitm.edu.my/id/eprint/96041/

Commodity prices and stock markets around the world are becoming more intertwined because of globalization. The stock market's performance was thought to be influenced by global commodity prices. For market analysts and investors, the performance of a stock market has always been the focus of their attention. Due to its importance in a country's economy, the stock market's success is always linked to the country's economic situation. As a result, the purpose of this research is to investigate the role of commodity prices in determining the behaviour of the stock market index, specifically the price of palm oil, crude oil, and gold. The impacts of commodities prices on the KLCI stock market performance are investigated in this article. To achieve the goal, this study used the boundaries test to determine whether there is a significant relationship between the underlying variables of the palm oil price, crude oil price, and gold price on the KLCI index. Different assumptions are utilized in performing the test for the data, which uses monthly data from 2004 to 2021, with a result of 216 sample sizes. By using Ordinary Least Squares (OLS) and multiple regression, this static panel data technique was used to examine the significant effect between the variables. The result from this study shows that all the independent variables, which are crude oil price, palm oil price and gold price are all significant towards the dependent variable, the Malaysian Stock Market performance (KLCI).