Abstract

The Relationship between Macroeconomic Factors and The Performance of Stock Market in Malaysia: The Case of Malaysia Industrial Product and Services Sector

Highlights

  • In recent decades, stock market research has remained one of the most important areas of study

  • The exchange rates became more volatile with the floating exchange rate and can be a source of destabilizing shocks rate following the fall of the Bretton Woods regime (Bergin et al, 2017) Currency risk has risen due to the high uncertainty associated with floating exchange rates, and this is something that global investors need to take into consideration while investing in Malaysia

  • According to Reboredo et al (2016), the analysis has shown that stock markets and currency rates have a favourable relationship with the USD and the EUR, where home currencies appreciate as stock prices grow

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Summary

Introduction

Stock market research has remained one of the most important areas of study. The extant empirical research does not agree on a list of elements that influence stock market performance It is for this reason that understanding what factors influence stock market return is critical, as it has an impact on economic growth. Because of the aforementioned reasons, the objective of this study is to determine the long-term link between macroeconomic factors and Kuala Lumpur Industrial Product stock performance By understanding these elements, it will help the investors to predict the future movement of the stock. The success of the stock market may reflect Malaysia's expectations of the future economy This indicates that it is significant for the state and policy makers to have a more detailed image in defining the interactions between selective criteria with stock market outcomes as they play an important role in managing the country's economic policies. It will increase the possibility that the stock market's actions can be accurately expected, and this will allow growth

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