Stock market movement and macroeconomic influences: evidence from Saudi Arabia
by Emmanuel Okey Ntui
J. for International Business and Entrepreneurship Development (JIBED), Vol. 6, No. 3/4, 2012

Abstract: This paper examines the dynamic relationship between stock price-movement and selected macroeconomic variables of Saudi Arabia by adopting the cointegration methodology. The monthly data on the Tadawul all-share price index, consumer price index, net foreign direct investment and deposit (discount) rates from January 2000 to December 2011 are used for this empirical investigation. Specifically, this paper focuses on the analysis of the long-run equilibrium and short-run multivariate causality between these variables and forecast stock market movement. An accurate estimation of the relationship between the stock market behaviour and economic variables as well as the forecast stock movement enables both local and global investors to make effective investment decisions. Similarly, for the policy makers, a precise prediction of this type of relationship and forecast movement of stock prices may help government monetary agencies and other institutions in designing policies to attract more capital inflows into an emerging economy of Saudi Arabia's capital market.

Online publication date: Sat, 30-Aug-2014

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the J. for International Business and Entrepreneurship Development (JIBED):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com