Economic impact on palm oil stock returns in Malaysia, Singapore, and Indonesia: a NARDL model analysis

Beh, Woan-Lin and Tok, Hui-Mei (2024) Economic impact on palm oil stock returns in Malaysia, Singapore, and Indonesia: a NARDL model analysis. Journal of Sustainability Science and Management (Malaysia), 19 (7). pp. 195-202. ISSN 2672-7226

The study examines the relationship between Malaysia’s economic conditions and the returns on palm oil stocks in Malaysia, Indonesia, and Singapore. The non-linear autoregressive distributed lag framework was used to analyse the asymmetric impact of Malaysian macroeconomic factors on palm oil stock returns in each country. The findings reveal that the exchange, inflation, and unemployment rates, as well as gold and crude oil prices, strongly influence the long-term returns of palm oil stock. Specifically, unfavourable changes in crude oil prices significantly impact palm oil stock returns. Other key variables also show significant associations with palm oil stock returns, both positively and negatively. In conclusion, investors and stakeholders should take Malaysia’s general economic situation into account when developing investment plans, in addition to fluctuations in the returns on palm oil stocks.

Full text available from: Official URL: https://jssm.umt.edu.my/wp-content/uploads/2024/07...

Abstract

The study examines the relationship between Malaysia’s economic conditions and the returns on palm oil stocks in Malaysia, Indonesia, and Singapore. The non-linear autoregressive distributed lag framework was used to analyse the asymmetric impact of Malaysian macroeconomic factors on palm oil stock returns in each country. The findings reveal that the exchange, inflation, and unemployment rates, as well as gold and crude oil prices, strongly influence the long-term returns of palm oil stock. Specifically, unfavourable changes in crude oil prices significantly impact palm oil stock returns. Other key variables also show significant associations with palm oil stock returns, both positively and negatively. In conclusion, investors and stakeholders should take Malaysia’s general economic situation into account when developing investment plans, in addition to fluctuations in the returns on palm oil stocks.

[error in script]

Item Type:	Article
AGROVOC Term:	palm oils
AGROVOC Term:	petroleum
AGROVOC Term:	gold
AGROVOC Term:	macroeconomics
AGROVOC Term:	stakeholders
AGROVOC Term:	inflation
AGROVOC Term:	unemployment
Geographical Term:	Malaysia
Depositing User:	Mr. Khoirul Asrimi Md Nor
Date Deposited:	13 May 2025 08:00
Last Modified:	13 May 2025 08:00
URI:	http://webagris.upm.edu.my/id/eprint/2654

Actions (login required)

View Item