Open AccessMacroeconomic Determinants of Stock Market Performance in Nigeria
Author(s) -
Ogunsakin Sanya,
Tope Isaac Awe
Publication year - 2020
Publication title -
business and economic research
Language(s) - English
Resource type - Journals
ISSN - 2162-4860
DOI - 10.5296/ber.v10i4.17633
Subject(s) - stock market , economics , stock exchange , exchange rate , stock (firearms) , interest rate , oil price , inflation rate , monetary economics , econometrics , financial economics , business , finance , mechanical engineering , paleontology , horse , biology , engineering
This study investigated the macroeconomic determinants of stock market performance in Nigeria between 1985 and 2018. The source of the data for the study were from World Bank Development Indicator, 2020 edition and Central Bank of Nigeria statistical bulletin. The study employed ARDL co-integration approach as estimation technique. Findings from the study showed that inflation rate, real interest rate, real effective exchange rate and world oil price were the major determinants of Nigeria stock market performance during the study period. Based on these findings, the study therefore concludes that both endogeneous and exogeneous macroeconomic variables determine Nigeria stock market performance. Hence, the activities in the global oil market should be monitored in formulating policies to enhance stock market performance in Nigeria.