The Impact of Economic Outlook on the Stock Market of the Service Sector in Malaysia
Yong Xian Jeat1, Hafinaz Hasniyanti Hassan2
1Yong Xian Jeat, School of Accounting, Finance and Quantitative Studies, Faculty of Business Management, Asia Pacific University of Technology and Innovation, Technology Park Malaysia, Bukit Jalil, Kuala Lumpur, Malaysia.
2Hafinaz Hasniyanti Hassan, School of Accounting, Finance and Quantitative Studies, Faculty of Business Management, Asia Pacific University of Technology and Innovation, Technology Park Malaysia, Bukit Jalil, Kuala Lumpur, Malaysia.
Manuscript received on 05 February 2019 | Revised Manuscript received on 11 February 2019 | Manuscript Published on 19 February 2019 | PP: 190-200 | Volume-7 Issue-5S January 2019 | Retrieval Number: ES2146017519/19©BEIESP
Open Access | Editorial and Publishing Policies | Cite | Mendeley | Indexing and Abstracting
© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: This research is focus on the impact of the economic factors on the service sector’s stock market in Malaysia for the period of year 2012 to year 2016 which are five years. In the year 2014, the value of the Malaysian Ringgit (MYR) was starting to decrease dramatically as well as other factors affected by the exchange rate of Malaysia currency such as interest rate and money supply. Therefore, this research seeks to find out on the effect of the exchange rate, interest rate and money supply on the stock market of the service and trading companies (service sectors). The relationship between the service sector’s stock market and the exchange rate, interest rate and money supply are determined by using the correlation and multiple regressions analysis. Overall, the results showed that the stock market of the service sectors in Malaysia would likely to be affected by the exchange rate, money supply and interest rate, yet the most influence factor was the exchange rate as the Malaysian Ringgit is decreased in value, sending the panic to the market.
Keywords: Stock Market, Exchange Rate, Interest Rate, Money Supply, Service Sector.
Scope of the Article: Agent-Based Auctions and Marketplaces