The determinant of the stock market index: case study of Malaysia and Singapore / Syazmeer Makbolamsah

This study was provisionally to investigate the determinant of commodity price in comparison to performance of Kuala Lumpur Composite Index and Straits Times Index. KLCI (Kuala Lumpur Composite Index) is a major stock index which tracks the performance of 30 largest companies by full capitalization listed on Main Board of the KLCI. STI (Straits Times Index) is comprised of 33 of the exchange's most valuable firms. It is a modified value-weighted index, which is complicated in calculation, but ensures that the largest firms have the greatest impact on the index's value. This study was based on monthly data basis which are gathered by using sample size of 72 observations over the period between January 2010 and December 2015. The data taken for the research are from several authorized sources such as Bursa Malaysia, and datastream. In order to achieve the objective, Ordinary Least Square Method will be applied on the research model to compute the best linear unbiased equation (BLUE) for the comparison of both indexes toward the commodity prices. As for other reasons, the result revealed by regression and independent T-test shows that the commodity price such as gold, crude oil and crude palm oil will have a positive relationship and impact toward Kuala Lumpur Composite Index and Straits Time index.