Contribution stock indices in making an investment decisions

This paper to measure how the stock indices will help the investor or potential investor in making' investment decisions. In addition, this paper examines how the stock indices affected by the performance off the economy. The computation method of the indices is also being included. The data used for analysis were monthly price indices of the various sectors listed at KLSE for a 42 months period commencing on the 1st January 1992 to 30th June 1995. Analysis revealed that all the indices are significant to the movement of the Composite index but the most significant is EMAS index. From my study also determine which sector that should invest relative to the market movement.