A study on the factors affecting share price of Sime Darby

There are many research have been conducted in order to investigate the relationship effects of the leverage performance economic conditions towards stock price movement. Those researches are also focus more on the Europe market and Middle East capital market compared to Malaysian capital market. This study is attempt to extend the body of knowledge by analyzing the factors that influence the price movement of Sime Darby Berhad shares by using interest rate, inflation rate and exchange rate in Malaysian capital market as the independent variables. The Single Linear Regression (SLR) and Multiple Linear Regression (MLR) methods have been applied to measure the significant relationship between Sime Darby Berhad share price, levels of interest rates, inflation rate and volatility of exchange rate from 2007 until 2010. The result shows that only exchange rate or currency has a negative significant relationship with the leverage performance in Malaysian market. Besides that, the result from this research has some potential to be used by the market analyst for predicting stock price movement of the chosen company in this country