Macroeconomic determinants of stock market performance in Malaysia

Year 2020 is a challenges year, not for Malaysia but also the whole country in the world due to the COVID-19 pandemic. The country's economy and the stock market were affected as a result of the implementation of the movement control order introduced to combat the COVID-19 infection. This study is to examines the relationship of the macroeconomic on the Malaysian stock market performance: FTSE Bursa Malaysia KLCI Index. More specifically, this research aims to extend the current literature reviews by including interest rate, inflation rate, GDP, exchange rate as the macroeconomic variable. Then, market capitalization and market turnover as the control variable in determining their relationships towards the Malaysian stock market performance. By using E-Views 10, Analytical model is performed to examine the hypotheses and statistical relationships in a yearly basis from 1990 to 2020. From the empirical result, it showed that two variables were significant (exchange rate and market capitalization) while other variables were not.