The influence of economic variables toward share price performance : a study on the active counters listed at the KLSE main board/ Rolfandy Awi

Much has been said about the relationship between macroeconomic variables and the performance of stock market. Do these economic variables really affect the stock market performance? Thus, the purpose of this paper attempts to find the answer. This paper explores influence of macroeconomic variables towards the share price performance by utilizing regression and general analysis on the Kuala Lumpur Stock Exchange . The sample period is from 1999 to 2002, a period after the Malaysian economy has recovered from a recurrence of the 1997-98 Asian economic crisis. In this research, the Malaysian stock market has been chosen as a dependent variable and GDP, interest rate and inflation rate as the independent variables.