KLCI is a prominent stock exchange in Malaysia that tracks the performance of firms. It has gained the attention of investors since it can influence investment decisions for investors and corporations alike. This research studies the influence of money supply, oil prices, and exchange rates on the Kuala Lumpur Composite Index (KLCI). The study examines the link between the KLCI, money supply, oil prices, and exchange rates. This analysis also employed three independent variables: the money supply (M.S.), the oil price (O.P.), and the exchange rate (E.R.). Multiple linear regression techniques are applied in this research using monthly data. In addition, the normality test, descriptive analysis, regression analysis, and Augmented Dickey Fully (A.D.F.) root of unit tests are used to determine the relationship between variables. These sources provided the information: Refinitiv Eikon Datastream, Yahoo Finance, Trading Economics, and Bursa Malaysia. Specifically, the data collected between July 2012 and July 2020 will be analyzed with E-Views 11. According to the results, every independent variable influences the KLCI. However, neither the money supply nor the exchange rate was significantly impacted. Only money supply (M.S.) demonstrated a negative correlation with the KLCI. However, oil prices (O.P.) substantially impact the KLCI. This element contributes to the high performance of the KLCI. Future research should increase understanding and generate more consistent outcomes by experimenting with various data architectures and incorporating other macroeconomic variables.
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In-Text Citation: (Mohamed et al., 2022)
To Cite this Article: Mohamed, S., Bakri, N. S. M., Ibrahim, W. M. F. W., Nasrul, F., Noh, M. K. A., Isa, M. A. M., & Hassan, S. S. (2022). The Relationship between Money Supply, Exchange Rates and Oil Prices with KLCI’s Price. International Journal of Academic Research in Business and Social Sciences, 12(10), 1472– 1483.
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