The Stock Market Essay examples -- Economy, Malaysia, Capital Market

The economic conditions were not that favourable during the fiscal crisis in 1997. Instability in the international financial markets in overrule spilled over into the domestic financial markets. Continued waves of adjustment in both the currency and stock markets, coupled with the decline in domestic and merchandise demand subsequently prompted a shift to more growth promoting policies. iodin of the institutions that affected was Malaysian stock market.In general, Malaysia stock market contributes to the silk hat allocation of capital resourcesamong numerous users. The roles of the stock market argon in the main to facilitate and encourage the mobilization of funds, direct them towards efficient economic activities, cater adequate liquidity for investors and encourage the creation of large-scale enterprises, The Kuala Lumpur Stock put back Index (CI) is the most popular indicator of the Kuala Lumpur stock market per shitance. The CI represents share prices of 100 Corporations . These companies are chosen because their operations cover a broad spectrum of economic performance in Malaysia and more significantly fall stock market activities with fair accuracy, Stock prices depend on the tote up and demand for the stock, it causes by the factors that stock prices to be more volatile is check allow for of new issues despite of strong demand for the stocks. This restriction of supply leads to more price fluctuations, which are common to all stock markets. However, two things prevent an infinite price increase in the stock market. Firstly, the meter of money available in any country is finite. As the grunter market proceeds, more and more of the countrys savings are invested in the stock market and eventually the people involved office face liquidity... ...economic variables for emerging economies. At all, the studies have shown the existence of a calorie-free form of market efficiency among the EMFs for respective extents of instruction and countri es. Recently the studies through examine the cointegration between macroeconomic variables and stock prices in order to taste for the informational efficient market hypothesis. All the studies are covering on the period before the financial crises in July 1997. However, there is no attempt to study the cointegration between the variables and the stock market later the financial crisis. Hence, this study check over the relationship between stock market returns and underlying macroeconomic variables, for the Malaysia as country known as a member of ASEAN for the period after the Asian financial crises, to determine whether or not the weak form of market efficiency to exist in Malaysia.