The relationship between economic indicators and stock exchange index of ASEAN-4 countries: Indonesia, Malaysia, Philippines, and Thailand

• Main Authors: Camino, Craig Jimver Mikael C., Del Pilar, Micko Briel D., Fuentebella, Paul A., Jr., Hong, Bryan Stephen A.
• Format: text
• Language: English
• Published: Animo Repository 2023
• Subjects: Stock exchanges—Southeast Asia; Economic indicators—Southeast Asia; Economics
• Online Access: https://animorepository.dlsu.edu.ph/etdb_finman/64
• Institution: De La Salle University

The rise of many uncertainties and risks are affecting a lot of people and companies around the world. This research aims to identify some of these economic indicators and how they affect the performance of the stock market. Unlike other research, this paper includes the countries of ASEAN-4 namely: Philippines, Indonesia, Malaysia, and Thailand. The object of this paper is to find the correlation between dependent variables, the Stock Market Index Price, to its independent variables, which are interest rate, unemployment rate, GDP growth rate, and producer prices, using the Multiple Linear Regression model. After fulfilling all assumptions for the dataset, this research found several findings. For all ASEAN-4 countries, Interest rate is significant and is negatively correlated with Stock Market Index Price. On the other hand, GDP growth rate and Producer Prices is not significant in affecting Stock Market Index Prices. Moreover, unemployment is significant and is negatively correlated for the countries Indonesia and Malaysia but is not significant for the countries Philippines and Thailand. Also, another implication is that interest rate is a significant element affecting the Stock Market Index Prices of most countries.