THE DETERMINANTS OF STOCK MARKET PERFORMANCE : A STUDY IN MALAYSIA
MUHAMMAD SYAZWAN BIN MALEK 2011476242
Submitted in Partial Fulfilment of the
Requirement for the Bachelor of Business Administration (Hons) Finance
BACHELOR OF BUSINESS ADMINISTRATION (HONS) FINANCE
FACULTY OF BUSINESS MANAGEMENT UNIVERSITI TEKNOLOGI MARA KELANTAN
KAMPUS KOTA BHARU SUBMISSION DATE:-
JUNE 2013
DECLARATION OF ORIGINAL WORK
BACHELOR OF BUSINESS ADMINISTRATION (HONS) FINANCE FACULTY OF BUSINESS MANAGEMENT
UNIVERSITI TEKNOLOGI MARA KELANTANG KAMPUS KOTA BHARU
I declare that the work in this thesis was carried out in accordance with the regulations of Universiti Teknologi MARA. It is original and is the result of my own work, unless otherwised indicate to any other academic institution or non-academic institution for any other degree or qualification.
In the event that my thesis be found to violate the conditions mentioned above, i voluntarily waive the right of conferment of my degree and agree be subjected to the disciplinary rules and regulations of Universiti Teknologi MARA.
Name of Candidate : Muhammad Syazwan Bin Malek Candidate’s ID Name : 2011476242
Programme : Bachelor of Business Administration (Hons) Finance
Faculty : Business Management
Thesis Title :The Determinants of Stock Market Performance : A study in Malaysia.
Signature : ____________________
Date : June 2013
ACKNOWLEDGEMENT
ASSALAMUALAIKUM W.B.T.
“In the name of Allah the Almighty, the Merciful and the Beneficent”
First and foremost, I express my deepest gratitude to Almighty Allah, who has enable me to overcome all the obstacles and giving me some efforts, strength, ideas in completing this project paper.
Secondly, I would like to express my gratitude to my advisor Mr. Rustam Shaari and second examiner Miss Rabihah Nawawi for the support and full commitment to give me advise for completing this project paper. I also want to thank them for giving me the skill, give comment for my findings and give me some advice and guidance for the completion of my study.
Alhamdulillah, with the submission of this project paper, I have fulfilled a partial fulfillment to the requirement for the Bachelor in Business Administration (Hons) Finance.
Special gratitude to my beloved family who has encourages and gives support to me from the beginning of this study.
Finally, I also give my deepest thanks to all my friends, who have always, be by my side for the support and help. Special thanks also go to all peoples who have directly or indirectly helping me in completing this thesis.
Thank you very much.
ABSTRACT
This study attempts to determine the determinants of stock market performance : a study in Malaysia whether gross domestic product (GDP), unemployment, trading volume and inflation rate have relationship with stock market performance. This study uses 10 years data that is collected from data stream at library UiTM Kota Bharu. The data collected was then tested on the regression analysis and then were use to test the hypothesis in this study.
From the regressions that were use in this study, researcher found that all independent variables show a significant relationship with dependent variables.
Keywords: stock market, GDP, unemployment, trading volume, inflation rate
TABLE OF CONTENT
CONTENT PAGE
DECLARATION OF ORIGINAL WORK LETTER OF SUBMISSION
ACKNOWLEDGEMENT ABSTRACT
CHAPTER 1 :
1.0 Introduction 1
1.1 Background of Study 5
1.2 Problem Statement 8
1.3 Theoretical Framework 9
1.4 Research Hypothesis 10
1.5 Research Objective 11
1.6 Scope of Study 11
1.7 Significant of Study 12
1.8 Definition of Term 13
CHAPTER 2 :
2.0 Literature Review 15
2.1 Stock Market 15
2.2 Relationship between GDP and Stock Market 16
2.3 Relationship between Unemployment and Stock Market 18 2.4 Relationship between Trading Volume and Stock Market 19 2.5 Relationship between Inflation Rate and Stock Market 22
