An empirical study on the inter-dependencies of the Kuala Lumpur stock exchange with other major stock exchanges / Ruzaidin Rosli

This research analyze the relationship and inter dependencies between the Kuala Lumpur Stock Exchange (KLSE) with the major stock exchanges in the world, namely Hang Seng, Australian All Ordinaries, Dow Jones, Financial Times, and Nikkei. Six variables were identified for this analysis, they are KLSE (as the dependent variable) and Hang Seng, Australian All Ordinaries, Dow Jones, Financial Times, and Nikkei (as the independent variables). The data collected for this analysis is from 1990 to 1994. The result of this analysis found that the movements in the KLSE indices is influenced by the movements in the major markets overseas. It was concluded that there is some truth or validity in the public or investors belief that the Malaysian market is highly influenced by the major stock markets in the world.