A study on the relationship between interest, inflation and foreign exchange rate toward stock price of finance company listed under finance sector in KLSE main board / Marini Mohamad

Mohamad, Marini (2001) A study on the relationship between interest, inflation and foreign exchange rate toward stock price of finance company listed under finance sector in KLSE main board / Marini Mohamad. [Student Project] (Unpublished)

Abstract

This project paper is to measure and analyze the relationship between economic indicators that are interest, inflation and foreign exchange rates toward stock price of finance companies listed under Finance Sector in Kuala Lumpur Stock Exchange (KLSE) Main Board. 10 companies out of 63 finance companies listed under Finance Sector in KLSE Main Board will be selected as samples for the purpose of this project paper.
This paper want to investigate whether economic variable selected i.e. interest rates, inflation rates and foreign exchange rates really affect the stock price movement of finance company. An increase or decrease of interest rates, inflation rates and foreign exchange rates will be analyzed to examine the relationship between these three economic indicators toward stock price. Consumer Price Index (CPI) are used to determine the inflation, while the interest rates are determined by Base Lending Rate (BLR) for Finance Company and foreign exchange rate are determined by US Dollar.
This research will use data from January 1997 to December 2000 that is to investigate the performance of stock prices of finance companies during economic crisis until year 2000. The data will be analyzed using time series processing (TSP) method.
From the empirical result, it has been concluded that the interest, inflation and foreign exchange rates have negative relationship with stock price of finance companies and its also have significant relationship toward stock price. In other words, the interest,

Metadata

Item Type: Student Project
Creators:
Creators
Email / ID Num.
Mohamad, Marini
99113295
Contributors:
Contribution
Name
Email / ID Num.
Thesis advisor
Hassan, Salwana
UNSPECIFIED
Subjects: H Social Sciences > HG Finance > Liquidity
H Social Sciences > HG Finance > Investment, capital formation, speculation > Investment companies. Investment trusts. Mutual funds
H Social Sciences > HG Finance > Investment, capital formation, speculation > Foreign investments. Country risk
H Social Sciences > HG Finance > Investment, capital formation, speculation > Stock exchanges. Insider trading in securities
H Social Sciences > HG Finance > Investment, capital formation, speculation > Stockbrokers. Security dealers. Investment advisers. Online stockbrokers
H Social Sciences > HG Finance > Investment, capital formation, speculation > Stock price indexes. Stock quotations
Divisions: Universiti Teknologi MARA, Terengganu > Dungun Campus > Faculty of Business and Management
Programme: Bachelor of Business Administration (Hons) Finance
Keywords: Economic Indicators ; Measure ; Analyze ; Kuala Lumpur Stock Exchange ; Finance Company And Foreign Exchange
Date: April 2001
URI: https://ir.uitm.edu.my/id/eprint/45492
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