The macroeconomic factors affecting toward stock price in Kuala Lumpur composite index / Nurfathin Amerra Ruszee

Stock market can be defined as the market in which shares are issued and traded e r through exchanges or over-the-counter markets. Stock market can be split into two main sections which is the primary and secondary market. The purpose of this research is to examine the relationships between stock price in Kuala Lumpur Composite Index (KLCI) and macroeconomic variables. Malaysia is a developing country, so that this paper will aim and investigate how macroeconomic variables can response towards the stock price in Kuala Lumpur Composite Index in a developing time. In order to see the determinant factors, a set of 20 years range of data will be used which from the years 1994 until 2014. Unit Root Test regression will be used to see the factors that contribute to the changes in Malaysia's stock price. KLCI will be used as dependent variable for this research while interest rate, money supply, consumer price index and crude oil price will be used as independent variables. This study is similar to many of the earlier studies in some aspects, so it uses econometric tools used in earlier studies but at the same time this study differentiates itself from other studies in the sense it uses Malaysian markets and macroeconomic data for analysing the relationship and it also tries to analyse the impact of global economy on the Malaysian markets.