Macroeconomic determinants on Malaysian stock market performance

Abstract

The objective of this research is to examine the macroeconomic determinants on Malaysian share market performance. Macroeconomic variables applied in this investigation comprise inflation rate, exchange rate, crude oil price, foreign direct investment, unemployment rate whereas Malaysian share market performance is the dependent variable. The secondary data was extracted from various websites from 2011 to 2020 on a quarterly basis. Various tests are used to test in the EViews 10. The results show that exchange rate along with crude oil price have a significant relationship on Malaysian share market performance. However, this research also discovered that inflation rate, foreign direct investment as well as unemployment rate have least impact on Malaysian share market performance.