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

The scotch conditions were not that lucky during the financial crisis in 1997. Instability in the international financial grocery stores in turn spilled over into the domestic financial trades. Continued waves of adjustment in both the currency and nisus markets, coupled with the decline in domestic and export demand subsequently prompted a shift to more issue promoting policies. One of the institutions that affected was Malaysian express market.In general, Malaysia stock market contributes to the best allocation of capital resourcesamong numerous users. The roles of the stock market atomic number 18 mainly to facilitate and encourage the mobilization of funds, direct them towards efficient economic activities, provide adequate liquidity for investors and encourage the creation of large-scale enterprises, The Kuala Lumpur neckcloth Exchange Index (CI) is the most popular indicator of the Kuala Lumpur stock market performance. The CI represents share prices of 100 Corporatio ns. These companies are chosen because their operations come home a broad spectrum of economic performance in Malaysia and more importantly reflect stock market activities with fair accuracy, Stock prices depend on the supply and demand for the stock, it causes by the factors that stock prices to be more explosive is limited supply 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 amount of money available in any country is finite. As the bull market proceeds, more and more of the countrys savings are invested in the stock market and eventually the people problematical might face liquidity... ...economic variables for emerging economies. At all, the studies have shown the existence of a creaky form of market efficiency among the EMFs for respective boundarys of call for and countries. belatedly the studies done examine the cointegration between macroeconomic variables and stock prices in hallow to test 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 plan of attack to study the cointegration between the variables and the stock market after the financial crisis. Hence, this study investigate 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.