Title of article
THE IMPACT OF COMMODITY PRICES, INTEREST RATE AND EXCHANGE RATE ON STOCK MARKET PERFORMANCE: AN EMPIRICAL ANALYSIS FROM MALAYSIA
Author/Authors
NORDIN, NORHAFIZA Universiti Utara Malaysia - College of Business, School of Economics - Finance and Banking, Malaysia , NORDIN, SABARIAH Universiti Utara Malaysia - College of Business, School of Economics - Finance and Banking, Malaysia , ISMAIL, RUSMAWATI Universiti Utara Malaysia - College of Business, School of Economics - Finance and Banking, Malaysia
From page
39
To page
52
Abstract
This paper examines the impact of commodity prices (palm oil price, oil price, and gold price), interest rate, and exchange rate on the Malaysian stock market performance. Employing the bounds test approach, the results of the study showed cointegrating relationships among variables. Specifically, the results revealed a significant influence of palm oil price on the stock market index. However, no significant influence was observed for both the oil price and gold price. Interest rate and exchange rate showed significant influences, which are consistent with past empirical studies. One important policy implication from this study is that the authorities should also pay attention to the effect of commodity prices, in addition to macroeconomic variables, in implementing relevant polices, as they may have a negative impact on the Malaysian stock market.
Keywords
Stock price behaviour , commodity prices , macroeconomic variables , bounds testc
Journal title
Malaysian Management Journal
Journal title
Malaysian Management Journal
Record number
2575213
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