Microeconomic Factors Affecting Stock Market Performance
When we heard about stock market, first things came into our mind is stock market is one of the important part of an economy. This is because, stock market is the place where shares of publicly held companies are traded through over-the counter-market or through exchanges and issued. Stock market plays a important roles for the market, industry, and also for the investors that wants to gain maximum return on savings. Besides that, stock market also uses as the measurement tools that provided information about the industry growth as well as the stability of the economy and their performance.
Meanwhile, stock market performance refers to the overall market performance of the market whether they perform well or poor. The performance of market
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Since stock market is one of most important part of every economy, the study wants to identify the factors that can affect stock market performance in ASEAN countries.
There are several factors that had been selected as independent variables, which are an interest rate, exchange rate, and money supply in order to measure whether they have significant impact on stock market performance. First of all, this study defined the definition of each independent variable.
First, interest rate can be defined as a charged by lenders as the compensation for the using or borrowing an asset. Interest rates are used which is based on lending rate (BLR). Study chose this type of rate of interest rate because it plays an important role in the business transaction especially in terms of share the ownership of property in a financing undertaking.
Another factor that used in this study is exchange rate, which is focus on one of the currency, US Dollar. An exchange rate consists of base currency and a counter currency. In a direct quotation, the foreign currency is the base currency and the domestic currency is the counter currency. Meanwhile in an indirect quotation, the domestic currency is the base currency and the foreign currency is the counter currency. The study tries to see whether the fluctuation of the exchange rate may affect the stock market performance or
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