scholarly journals Social and Economic Drivers of Stock Market Performance in Nigeria

2021 ◽  
Vol 3 (3) ◽  
pp. 137-143
Author(s):  
Ismaila Akanni Yusuf ◽  
Mohammed Bashir Salaudeen ◽  
Hope Agbonrofo
Keyword(s):  
Exchange Rate ◽  
Interest Rate ◽  
Life Expectancy ◽  
Stock Market ◽  
Positive Impact ◽  
Market Performance ◽  
Secondary Data ◽  
Ordinary Least Squares ◽  
Stock Performance ◽  
Stock Market Performance

The study examines the effect of the social and economic indicators on the stock market performance in Nigeria between 1981 and 2019. The study employs secondary data from the World Bank and Central Bank of Nigeria using the ordinary least squares as the technique of estimation. Findings show that regarding the economic drivers, interest rate, exchange rate, and inflation rate negatively impact the stock market while only income exerts a positive impact. However, both income and interest rate are significant economic drivers of stock performance. Regarding social drivers, life expectancy, poverty, and population exert a positive impact on stock performance. Similarly, both life expectancy and population are significant social drivers of stock market performance in Nigeria. The study recommends that monetary authorities should be cautious in avoiding discretionary policies that might hike the exchange rate; otherwise, the flow of funds to the stock market will be derailed. Also, the fiscal authority should invest massively in safety nets programmes to enhance the capacity of the growing population and reduce poverty.

scholarly journals Evaluation of the Impact of Macroeconomic Variables on Stock Market Performance in Nigeria

2019 ◽  
Vol 5 (2) ◽  
pp. 34 ◽  
Author(s):  
Cordelia Onyinyechi Omodero ◽  
Sunday Mlanga
Keyword(s):  
Exchange Rate ◽  
Interest Rate ◽  
Stock Market ◽  
Price Index ◽  
Market Performance ◽  
Share Price ◽  
Series Data ◽  
Macroeconomic Variables ◽  
Stock Market Performance ◽  
The Impact

Stock market is an essential part of a nation’s economy and requires adequate evaluation of all factors that militate against its performance. This study investigates the role of macroeconomic variables in determining the stock market performance in Nigeria using annual time series data covering a period from 2009 to 2018. These data have been sourced from the World Bank Development Indicators, International Monetary Fund and CBN Statistical Bulletin. The results from the regression analysis indicate that exchange rate and interest rate do not have significant impact on share price index while inflation rate exerts a significant negative influence on share price index. On the contrary and in line with the concept of GDP and stock market performance, GDP significantly and positively impacts on share price index. The study among others suggests that the growth of the economy should be maintained to keep stock market flourishing while macroeconomic variables such as inflation, interest rate and exchange rate should be appropriately regulated by the relevant authorities to curtail all negative influences on stock market performance.

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

2021 ◽  
Vol 7 (3) ◽  
pp. 383-394
Author(s):  
Rukhsana Rasheed ◽  
Mazhar Nadeem Ishaq ◽  
Rabia Anwar ◽  
Mehwish Shahid
Keyword(s):  
Exchange Rate ◽  
Interest Rate ◽  
Stock Market ◽  
Inflation Rate ◽  
Market Performance ◽  
Stock Market Index ◽  
Macroeconomic Variables ◽  
Market Index ◽  
Stock Market Performance ◽  
The Impact

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.

Macro-Economic Variables and Stock Market Performance: Empirical Evidence from Colombo Stock Exchange

2020 ◽  
Vol 05 (02) ◽  
pp. 106-118
Author(s):  
M. Amaresh ◽  
S. Anandasayanan ◽  
S. Ramesh
Keyword(s):  
Interest Rate ◽  
Correlation Analysis ◽  
Stock Market ◽  
Price Index ◽  
Market Performance ◽  
Ordinary Least Squares ◽  
Share Price ◽  
Macroeconomic Variables ◽  
Stock Market Performance ◽  
The Impact

Stock market performance is considered as a significant indicator of financial and economic circumstances of a country. In a nutshell, a secured and regulated financial environment is being provided by the stock market where shares can be transacted at lower operational risk. The stock market also functions as a platform through savings, and investments of individuals are channelized into productive investment proposals. It allows capital formation and economic growth for the nation. The ultimate objective of this study is to examine the impact of macroeconomic variables on stock market performance. The macroeconomic variables (independent variables) used in this research study are Inflation, Interest Rate, and GDP. Stock market performance (All-Share Price Index) is the dependent variable. 120 Monthly observations from January 2009 to December 2018 had been taken for the study. The Augmented Dickey Fuller’s unit root test, Ordinary Least Squares Regression and Correlation analysis were applied to the variables. The results of correlation analysis indicated that inflation and Stock market performance are positively associated meanwhile interest rate, and GDP and Stock market performance are negatively correlated. The Ordinary Least Square results showed that nearly 75% of the variation in all share price index is explained by the three macroeconomic variables, GDP, TB and WPI. The study suggested some of the possible reasons for the positive impact of Inflation on the Colombo Stock market performance, and negative impact of Interest Rate on Stock market performance and recommended that efforts should be made to improve the Stock market performance.

scholarly journals Determinants of Stock Market Performance

NCC Journal ◽  
2018 ◽  
Vol 3 (1) ◽  
pp. 134-142
Author(s):  
Ramjee Rakhal
Keyword(s):  
Exchange Rate ◽  
Interest Rate ◽  
Literature Review ◽  
Stock Market ◽  
Money Supply ◽  
Market Performance ◽  
Major Objective ◽  
Macroeconomic Factors ◽  
Macroeconomic Variables ◽  
Stock Market Performance

This paper investigates the effect of selected macroeconomic factors viz. remittances, money supply, exchange rate, and interest rate on stock market performance based on literatures available in international and Nepalese context. The major objective of this paper is to find out the new area of research in Nepalese perspective with the help of literature review. The study demonstrates that remittance and money supplypositively affect the stock market whereas interest rate and exchange rate negatively affect the stock market performance. However, there is lack of consensus on the effect of each macroeconomic variables on stock market performance as it has number of literatures available which are similar as well as opposite to these findings. Thus, similar study can be extended employing different methodology with this combination of variables in Nepalese context that may better describe and analyze the performance of Nepalese stock market and helps to reduce the confusion among the literatures.NCC JournalVol. 3, No. 1, 2018, page: 134-142

scholarly journals Effect of Macroeconomic Variables on Stock Market Performance in Nigeria

2019 ◽  
pp. 1-14
Author(s):  
Emmanuel Isaac John
Keyword(s):  
Exchange Rate ◽  
Interest Rate ◽  
Stock Market ◽  
Money Supply ◽  
Inflation Rate ◽  
Market Performance ◽  
Test Results ◽  
Macroeconomic Variables ◽  
Stock Market Performance ◽  
Negative Effect

This paper aims at examining the effect of macroeconomic variables on stock market performance in Nigeria using annual time series data spanning 1981 to 2016.The data were obtained from Central Bank of Nigeria (CBN) Statistical Bulletin. Four macroeconomic variables, namely: money supply, interest rate, exchange rate and inflation rate were used as independent variables, while market capitalisation (proxy for stock market performance) was employed as the dependent variable. The results of Augmented Dickey-Fuller (ADF) test revealed that all the variables studied were stationary at first difference except money supply which was stationary at second difference. The Ordinary Least Square (OLS) regression results showed that money supply has a significant positive effect; interest rate has a significant negative effect; whereas, exchange rate has a positive but not significant effect and inflation rate has a positive but not statistically significant effect on stock market performance. The cointegration test results disclosed that there exist a long-run relationship between the macroeconomic indicators and stock market performance. The Granger Causality test results revealed that a unidirectional causality runs from money supply and exchange rate to stock market performance. In conclusion, money supply and interest rate are the true factors influencing stock market performance in Nigeria because they exhibited a significant effect on stock market performance. Whereas, exchange rate and inflation rate indicated a weak (non-significant) effect on stock market performance. Consequently, the recommendations are: monetary policies that favour the supply of money in the economy should be pursued in order to ensure a better performance of the stock market; Interest rate should be relatively low to guarantee a higher performance of the stock market because high interest rate has a significant negative effect on the Nigerian stock market.

scholarly journals Do Macroeconomic Variables Affect Stock Market Performance? A Case Study of DSEX and DS30 Index of Dhaka Stock Exchange

2019 ◽  
Vol 9 (3) ◽  
pp. 182
Author(s):  
Emran Hasan ◽  
Shahanawaz Sharif
Keyword(s):  
Exchange Rate ◽  
Interest Rate ◽  
Stock Market ◽  
Inflation Rate ◽  
Market Performance ◽  
Cointegration Analysis ◽  
Causality Test ◽  
Treasury Bill ◽  
Macroeconomic Variables ◽  
Stock Market Performance

Stock market performance– being the linchpin of an economy, requires variations in policies concerning macroeconomic variables. Keeping this in notion, this research assays the empirical association between stock market performance and a few selected macroeconomic variables namely interest rate, exchange rate, inflation rate, and 91-days Treasury bill rate using monthly data ranging from January 2013 to October 2018. Employing Johansen Cointegration analysis, the results of the study suggest that exchange rate and treasury bill rate are positive whereas interest rate and inflation rate are negatively associated with better stock market performance. Granger causality test implies bidirectional causality – between the interest rate and DS30 as well as DSEX while unidirectional causality is evident for both the indices which are running from interest rate, inflation and exchange rate to stock market performance. Formulation and implementation of prudent policies regarding the studied macroeconomic variables can lead to a healthy stock market outcome.

scholarly journals The Impact of Commodity Prices, Interest Rate and Exchange Rate on Stock Market Performance: An Empirical Analysis From Malaysia

2020 ◽  
Author(s):  
Norhafiza Nordin ◽  
Sabariah Nordin ◽  
Rusmawati Ismail
Keyword(s):  
Exchange Rate ◽  
Interest Rate ◽  
Stock Market ◽  
Palm Oil ◽  
Significant Influence ◽  
Market Performance ◽  
Commodity Prices ◽  
Oil Price ◽  
Stock Market Performance ◽  
The Impact

This paper examines the impact of commodity prices (palm oil price, oil price, and gold price), interest rate, and exchange rate on the Malaysian stock market performance. Employing the bounds test approach, the results of the study showed cointegrating relationships among variables. Specifically, the results revealed a significant influence of palm oil price on the stock market index. However, no significant influence was observed for both the oil price and gold price. Interest rate and exchange rate showed significant influences, which are consistent with past empirical studies. One important policy implication from this study is that the authorities should also pay attention to the effect of commodity prices, in addition to macroeconomic variables, in implementing relevant polices, as they may have a negative impact on the Malaysian stock market.  

scholarly journals How have COVID-19 Confirmed Cases and Deaths Affected Stock Markets? Evidence from Nigeria

2021 ◽  
Vol 15 (1) ◽  
pp. 76-99
Author(s):  
Nurudeen Abu ◽  
Awadh Ahmed Mohammed Gamal ◽  
Musa Abdullahi Sakanko ◽  
Ana Mateen ◽  
David Joseph ◽  
...  
Keyword(s):  
Exchange Rate ◽  
Stock Market ◽  
Least Squares ◽  
Market Performance ◽  
Oil Prices ◽  
Ordinary Least Squares ◽  
Distributed Lag ◽  
Long Run ◽  
Stock Market Performance ◽  
Canonical Cointegrating Regression

This study assesses the effect of COVID-19 proxied by the number of confirmed cases of the infection and deaths on Nigeria’s stock market over the 23rd March to 11th September 2020 period using the autoregressive distributed lag (ARDL), canonical cointegrating regression (CCR), dynamic ordinary least squares (DOLS) and fully modified ordinary least squares (FMOLS) techniques. The bounds test to cointegration result reveals that a long-run relationship exists between COVID-19 and Nigeria’s stock market (along with oil prices and exchange rate). The results of the various estimations demonstrate that COVID-19 (proxied by the number of confirmed cases of infection) has a negative and significant impact on stock market performance, while the number deaths has a positive and significant impact on the market in the long-run. In addition, oil prices and exchange rate have a significant and positive effect on stock market performance in the long-run. Similar results were found for sub-sectors including consumer goods and healthcare sub-sectors of the stock market. The study recommends policies to curb the spread of the virus

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