The impact of crude oil price and macroeconomic variables towards Malaysia stock market performance / Nur Aina Syafiqah Azeli

The research studies the impact of crude oil price and macroeconomic variables towards Kuala Lumpur Composite Index. The research used 4 independent variables, which were Crude Oil Price, Money Supply, Inflation, and Industrial Production. The research used 60 monthly data from 2016 until 2020. Three tests were conducted in evaluating the data and linkages, which are descriptive analysis, correlational analysis, and regression analysis. Apart from that, few assumptions test was also conducted to avoid spurious result. The assumption test includes, serial correlation, multicollinearity and heteroskedasticity. A lagged dependant variable was employed prior in the regression model to remove serial correlation error. The study found out that 2 variables that give significance impact towards the Malaysia stock market performance, which are Industrial Production and Oil Price. The variable Inflation and Money Supply have no significant impact towards Malaysia stock market performance. The research undoubtedly gave insight to investor and future researcher on how these variables could significantly or non-significantly impact the Kuala Lumpur Composite Index.