Effect of Macroeconomic Variables on Stock Market Performance in Nigeria

John, Emmanuel Isaac

doi:10.9734/jemt/2019/v22i630110

Cited by 22 publications

(23 citation statements)

References 7 publications

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“…Reading market trends and making a wise decision by investors could be relied on either technical analysis or fundamental analysis or perhaps it's based on both [2]. Looking over the movement of specific stock historical prices and predicting its future trend is called technical analysis.…”

Section: Empirical Studiesmentioning

confidence: 99%

“…The study revealed that both interest rate and money supply had a significant impact on stock prices. Meanwhile, [2] illustrated that money supply and interest rate are the factors due to their significant influences on Nigeria's stock market between 1981 and 2016.…”

Section: Article Reviewmentioning

confidence: 99%

“…Meanwhile, the relationship between macroeconomic variables and returns of share has been a crucial area for academics and investors to be examined. It is often discussed that one of the most important factors, which determine stock prices are some fundamental macroeconomics variables, for instance; interest rate, inflation, exchange rate and money supply [1] and [2]. This, has been confirmed by anecdotal evidence from many of financial sources that macroeconomic and monetary policy have a significant consequence on stock price volatility and then the change in market capitalization.…”

Section: Introductionmentioning

confidence: 96%

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The Effect of Macroeconomic Variables on Stock Exchange Market Performance: Iraq Stock Exchange Market as an Example erformance: Iraq Stock Exchange

Majeed

2022

JKSS

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The purpose of this study is to examine the impact of monthly time series data of macroeconomic variables from January 2005 to October 2021 on Iraqi’s stock market performance. The Iraqi Cen- tral Bank (ICB) was used to gather the information. This study used four macroeconomic factors as independent variables (money supply, interest rate, exchange rate and inflation rate), and market capitalization as a proxy for stock market performance as a dependent variable. All of the variables were stationary at a (level) according to the Augmented Dickey-Fuller (ADF) test. Money supply has a significant positive effect by nearly 0.50; interest rates have a significant negative effect 0.53; exchange rate has a significant positive effect by0.62; while the inflation rate has a negative but sta- tistically nonsignificant on stock market performance by 0.002, according to the Autoregressive Dis- tributed Lag (ARDL) regression results. Analysis of long-term macroeconomic variables and stock market performance shows that there is a long-term correlation. The true determinants of the Iraqi stock market’s success are money supply, exchange rate and interest rate, as all have a major impact.

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Section: Empirical Studiesmentioning

confidence: 99%

Section: Article Reviewmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 96%

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The Effect of Macroeconomic Variables on Stock Exchange Market Performance: Iraq Stock Exchange Market as an Example erformance: Iraq Stock Exchange

Majeed

2022

JKSS

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“…It was also found that economic development is significantly influenced by GDP, inflation rate, exchange rate and stock prices. John (2019) carried out a study in Nigeria to examine stock market performance and effects of money supply, annual interest rate and inflation. He used annual data series spanning 1981 to 2016.…”

Section: Literature Reviewmentioning

confidence: 99%

Economic Interactions among Stock Market Performance and Macroeconomic Variables with Mediating Role of Gold Prices Volatilities: An Evidence from Pakistan

Rasheed

Ishaq

Anwar

et al. 2021

READS

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In all emerging economies, one of the most challenging issues for investors is the multifaceted inter-relationship between volatility of gold prices and stock market index. During the COVID-19 sub-periods, gold has shown a strong hedging behavior against stock market performance. The main objective of this study was to quantify the long-run relationship among multiple independent macroeconomic variables (predictors) on stock market index (response variable) using the volatilities of gold prices as a mediator factor. This study applied the descriptive statistics, correlation, t-test and OLS multiple regression Model. The specific data comprised of period 2011-2020 regarding the fluctuations in gold prices, exchange rate, interest rate, inflation rate and performance of stock market index has been utilized. The statistical outputs of models showed that exchange rate (Dollar to PKR) was positively affecting the performance of Karachi Stock Exchange (KSE)-100 Index, whereas inflation rate and interest rate were negatively affecting the overall performance of KSE100 index. The findings of this study suggested that to achieve better performance of stock market, relatively low interest rate and inflation rate contribute a significant role. However, to increase the generalization capabilities of this study the impact of mentioned macroeconomic variables in other sectors like industrial production, oil & gas and energy sectors with wider time span can be more helpful.

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“…Etale and Eze found significant positive impact of money supply and exchange rate and negative effect of interest rate and inflation ration on stock market performance. Stock market performance is significantly influenced by macroeconomic variables and money supply has significant positive impact and interest rate has significant negative impact whereas exchange rate and inflation have no effect on stock market performance (John, 2019).…”

Section: Introductionmentioning

confidence: 99%

Macroeconomic Factors and Stock Market Performance in Nepal

Shrestha¹,

Lamichhane

2021

PYC Nep. J. Mgt

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This paper examines co-integrating relationship between macroeconomic factors and stock market performance in Nepal using time series data for the period 1987/88 to 2019/20. This study has used Autoregressive Distributed Lag (ARDL) bounds testing approach to identify the co-integrating relationship between macroeconomic variables and stock market performance. The stock market performance is measured by market capitalization which is considered as dependent variable and selected macroeconomic factors such as broad money supply measured by M2, economic growth measured by gross domestic product (GDP) and interest rate measured by 91-days Treasury bill rate are considered as explanatory variables. ARDL bounds test reveals that stock market performance is co-integrated with macroeconomic variables. Similarly, result of this paper shows the significant positive impact of economic growth. Further, finding reports a significant negative effect of broad money supply and interest rate on performance of Nepalese stock market in long-run. Finally, this paper concludes that disequilibrium of stock market performance in short-run is corrected by GDP, M2 and IR in the long-run. The policy implication of this paper is in formulation of capital market policy, monetary policy, financial policy and economic policy. Stock market policy makers should consider macroeconomic variables while formulating capital market policy for the better performance of stock market in Nepal.

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Effect of Macroeconomic Variables on Stock Market Performance in Nigeria

Cited by 22 publications

References 7 publications

The Effect of Macroeconomic Variables on Stock Exchange Market Performance: Iraq Stock Exchange Market as an Example erformance: Iraq Stock Exchange

The Effect of Macroeconomic Variables on Stock Exchange Market Performance: Iraq Stock Exchange Market as an Example erformance: Iraq Stock Exchange

Economic Interactions among Stock Market Performance and Macroeconomic Variables with Mediating Role of Gold Prices Volatilities: An Evidence from Pakistan

Macroeconomic Factors and Stock Market Performance in Nepal

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