Macroeconomic Activity in Malaysia Predicts Stock Market Trends with Precision
The study looked at how the Malaysian stock market is connected to the country's economy from 1980 to 2006. They found that real stock returns are linked to factors like industrial production, consumer prices, money supply, and exchange rates. These factors have a positive impact on stock returns in the long term. The analysis also showed that consumer prices, money supply, and exchange rates have the biggest influence on predicting stock price changes.