Effect of crude palm oil price towards Malaysian stock market performance / Nabilah Musa

Since Malaysia is the world's second largest producer of palm oil after Indonesia, the production of palm oil become a main source of economy in Malaysia. Moreover, the performance of economy is always associated with the stock market performance. In this study, the researcher use the commodity price which is price of crude palm oil as a main indicator to enhance the performance of Malaysian stock market which known as FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBMKLCI). Because of that, the main purpose of this research is to emphasize on the effect of crude palm oil price on Malaysian stock market performance. Besides, there are some macroeconomic variables used in this study that could influence the stock market return. Therefore, the dependent variable is stock market index, while there are five independent variables involved which are price of crude palm oil, consumer price index, exchange rate, industrial production index, and money supply. This study is using quarterly data from year 2005 until 2015. All data are collected using Datastream source and E-views 8 software is used to analyse the data collected.