1.0 INTRODUCTION
The stock market is crucial in determining the country’s economy while stock market return plays the important roles in Malaysia’s stock market. The concerns on stock market returns tended to increase at times as it can determine the economic activity of a country. Nevertheless, the relationship between stock price and macroeconomic variables such as interest rate, exchange rate and inflation rate is also crucial in determining the performance of stock market. Besides that, there are a number of researches have been carried out in developed country regarding on this topic. This is also plays an important roles in developing country such as Malaysia for the reason that the chosen variables will also give an effect to the stock …show more content…
Bursa Malaysia is established in the year of 1973 which it is recognized as the leading exchange holding company in Malaysia. Firstly, the job of Bursa Malaysia is to administrate certain exchanges in Malaysia. Bursa Malaysia is crucial in developing the universal reach of the capital market by providing aggressive services by employing the globally accepted standards. Bursa Malaysia offers aggressive structure to set up a competitive marketplace in worldwide and make an effort on the development of capital market in Malaysia. Bursa Malaysia is aimed to safeguard a dynamic, safe, and well organized trading market for national and foreign investors. Therefore, stock market is influential in bringing up the capital market and giving effort on Malaysia economic development. (‘FTSE Bursa Malaysia KLCI’, …show more content…
Basically, the fluctuation foreign currency exchange rate will affect the status of the company as the cash flows of the company in the future will be affected with the changes in the exchange rate. Besides that, appreciation of the exchange rate will lead to the increase in import while decrease in import of the country and vice versa. Thus, exchange rate is significant to the stock market as it will not only affect the transnational corporation, export-oriented corporation and also the local
The stock market is crucial in determining the country’s economy while stock market return plays the important roles in Malaysia’s stock market. The concerns on stock market returns tended to increase at times as it can determine the economic activity of a country. Nevertheless, the relationship between stock price and macroeconomic variables such as interest rate, exchange rate and inflation rate is also crucial in determining the performance of stock market. Besides that, there are a number of researches have been carried out in developed country regarding on this topic. This is also plays an important roles in developing country such as Malaysia for the reason that the chosen variables will also give an effect to the stock …show more content…
Bursa Malaysia is established in the year of 1973 which it is recognized as the leading exchange holding company in Malaysia. Firstly, the job of Bursa Malaysia is to administrate certain exchanges in Malaysia. Bursa Malaysia is crucial in developing the universal reach of the capital market by providing aggressive services by employing the globally accepted standards. Bursa Malaysia offers aggressive structure to set up a competitive marketplace in worldwide and make an effort on the development of capital market in Malaysia. Bursa Malaysia is aimed to safeguard a dynamic, safe, and well organized trading market for national and foreign investors. Therefore, stock market is influential in bringing up the capital market and giving effort on Malaysia economic development. (‘FTSE Bursa Malaysia KLCI’, …show more content…
Basically, the fluctuation foreign currency exchange rate will affect the status of the company as the cash flows of the company in the future will be affected with the changes in the exchange rate. Besides that, appreciation of the exchange rate will lead to the increase in import while decrease in import of the country and vice versa. Thus, exchange rate is significant to the stock market as it will not only affect the transnational corporation, export-oriented corporation and also the local