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Macroeconomic Determinants of Stock Market Performance in Nigeria

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  • Sanya Ogunsakin
  • Isaac Tope Awe

Abstract

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.

Suggested Citation

  • Sanya Ogunsakin & Isaac Tope Awe, 2020. "Macroeconomic Determinants of Stock Market Performance in Nigeria," Business and Economic Research, Macrothink Institute, vol. 10(4), pages 139-158, December.
    • Handle: RePEc:mth:ber888:v:10:y:2020:i:4:p:139-158
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    Cited by:

    1. Awe, Isaac Tope, 2022. "Stock Market Performance and Manufacturing Growth in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 6(3), pages 684-691, March.

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    More about this item

    Keywords

    Stock market performance; Macroeconomic variable and autoregressive distributed lag;

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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