RELATIONSHIP BETWEEN MACROECONOMIC VARIABLES AND STOCK MARKET INDEX: CO-INTEGRATION EVIDENCE FROM FTSE BURSA MALAYSIA HIJRAH SHARIAH INDEX
Journal Title: Asian Journal of Management Sciences and Education - Year 2013, Vol 2, Issue 4
Abstract
Academic writing on the inveterate relationship between macroeconomic variables and stock market returns is by now immense and strongly documented. However, there is a certain gap in the literature pertaining to the relationship between macroeconomic variables and Shariah indices which are becoming interesting area of research due to fast growing force of Islamic finance. Thus, this paper examines the long-term equilibrium relationships between selected macroeconomic variables and the FTSE Bursa Malaysia Hijrah Shariah Index. The paper identifies a cointegrating relationship along with identification of the exogeneity and endogeneity of the variables. It depicted that FTSE Bursa Malaysia Hijrah Shariah Index plays an important role economy, as it influence and lead major macroeconomic variables which are interest rate, money supply, consumer price index, and exchange rate. It statistically shows significant relationship with interest rates, exchange rate and money supply; it’s negatively affecting interest rate and exchange rate while positively money supply in the case of disequilibrium. CPI has been statistically proven insignificant. Implications of the finding and the cointegration are immense for the policy makers. They must not undermine the influence of FTSE Bursa Malaysia Hijrah Shariah Index as it has thoughtful impact on economic outlook.
Authors and Affiliations
Mirza Vejzagic, Hashem Zarafat
Keywords
Related Articles
- EP ID EP93711
- DOI -
- Views 111
- Downloads 0
Challenges Faced by Healthcare Workers in Rural Punjab of Pakistan: A Qualitative Study
This exploratory-qualitative study aims at improving the mother and child health, with the objective to understand the views of women about community midwives (CMWs) and lady health workers (LHWs) compared to traditional...
THE IMPLEMENTATION OF LEADER INTERPERSONAL COMMUNICATION IN CENDANA COLLEGE MEDAN
Problem in this study is how the leader in the context of leadership in this case the director implements interpersonal communication wich includes, openness, suportiveness, emphaty and equality in Cendana College. The p...
ROLE OF EMOTIONAL INTELLIGENCE IN SECONDARY SCHOOL TEACHERS LEADING TOCHILDREN’S’ DEVELOPMENT
This study primarily focused on the relationship between emotional intelligence and its impact on secondary school teachers.In Pakistan specifically, behind security unrest situations, it is very important that teachers...
DESIGN MANAGEMENT: RATIONALISATION AND ECONOMIC APPLICATIONS
As a kind of highly socialised behaviour, design activity keeps a strong relationship with economic activity. With economic orientation, “rationalisation” of design activity has been regarded as a necessary requirement a...
TESTING A MEASUREMENT SCALE OF ORGANIZATIONAL COMMITMENT USING A CONFIRMATORY FACTOR ANALYSIS
The present study seeks to develop a conceptual framework for measuring organizational commitment among employees in banking institutions by adopting three appropriate dimensions of measurement: affective commitment, con...