The impact of macroeconomic variables towards stock market in Malaysia

The changes in stock market in Malaysia have attracted researcher attention and believe to be the most studied construct in finance. Stock market is one of the variable of the economy stability. Therefore, the objectives in this study researcher try to determine the relationship of macroeconomic variables on stock market in Malaysia and to investigate the impact of macroeconomic variables (inflation rate, money supply and export volume) on stock market in Malaysia by using quarterly data over the period of 2010-2019. To achieve objective, descriptive analysis, correlation analysis and multiple regression analysis are used. This paper provides empirical evidence on the current practices and stock market in the quarterly reports of the Malaysian economy. This evidence would help in understanding and determining variables that influence the stock market in Malaysia. This paper contributes by extending the limited stock market research in Malaysia. Furthermore, the paper has tested more determinants, deemed to influence stock market compared to prior Malaysian studies. In addition, the paper used a larger sample size compared to previous Malaysian literature.