The relationship of macroeconomic variables on the stock price index in Malaysia / Siti Nurbasirah Roslan

This paper examines the relationship between the macroeconomic variables on the stock price in Malaysia. In the research have employ three macroeconomic variables which are exchange rate, interest rate and inflation rate to the FTSE Bursa Malaysia KLCI with the quarterly data which range from 1st quarter of January 2008 until 4th quarter of December 2015. In the empirical analysis, this paper employed Ordinary Least Square (OLS) method to estimate the regression. The results indicate that the changes in exchange rate and inflation rate has no significant effect on the changes of the FTSE Bursa Malaysia KLCI. However, there is highly negative significant relationship between stock market and interest rate. Moreover, the results further our understanding of the between the macroeconomic variables on the stock price in Malaysia in should be useful for speculator, regulator, and investor.