CORRELATION BETWEEN MACROECONOMIC, FINANCIAL VARIABLES AND STOCK MARKET: EMPIRICAL EVIDENCE FROM SAUDI STOCK EXCHANGE

UDC 336.761-048.87

  • Rahal Hassan Fatima – PhD student, the Department of Enterprises Economy and Management. Belarusian State Technological University (13a, Sverdlova str., 220006, Minsk, Republic of Belarus). E-mail: fatimarahaljaber@gmail.com

DOI: https://doi.org/10.52065/2520-6877-2021-244-1-174-179

Key words: macroeconomic variables, financial variables, Saudi Stock Exchange, TASI, correlation.

For citation: Rahal Hassan Fatima. Correlation between macroeconomic, financial variables and stock market: empirical evidence from Saudi stock exchange. Proceedings of BSTU, issue 5, Economics and Management, 2021, no. 1 (244), pp. 174–179 (In Russian). DOI: https://doi.org/10.52065/2520-6877-2021-244-1-174-179.

Abstract

This paper examines the impact of macroeconomic, financial variables and the stock market in Saudi Stock Exchange. For this purpose, macroeconomic, financial variables, and Saudi stock index were analyzed for the period of 2000 to 2018. The variables were: Imports, Exports, Listed domestic companies, Foreign direct investment, GDP, Broad money, Inflation rate, and Tadawul stock index (TASI). Correlation was used to capture the relationship. The study showed strong relationships between IMP-GDP, IMP-EXP, IMP-LD, IMP-BM, GDP-EXP, GDP-LD, GDP-BM, and LD-BM while TASI has weak relationship with the financial and economic variables.

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