The macroeconomic determinants of Malaysia stock market / Sharifah Khairah Syed Khalid

This study examines the determinants of Malaysia’s stock market performance against the macroeconomic factors. The data employed in this study is from January 2007 until December 2018. Specifically, the stock data used is the top 100 leading firms (FBM100) as the dependent variables. Independent variables used in this study are exchange rate, gross domestic product, interest rate and inflation rate. As for runned data, this paper used Descriptive Statistic, Pearson Correlation, Regression Model, Correlation Coefficient and Multicollinearity test. It is found that the exchange rate has negative relationship with FBM100. Meanwhile, gross domestic product (GDP) and interest rate are found to have significant relationship with FBM100. However, the inflation rate has negative relationship with FBM100. This study uses all macroeconomic factors in one model as well as the stock market.