Oil Price Volatility and Macroeconomic Factors Influence Stock Market Return: A Study In Malaysia

The prime objective of this study is to analysis the impact of crude oil prices and macroeconomic variables on the stock market of Malaysia .For this purpose we have taken the data from 1981-2011 and applied the Johnson co integration, ECM and unit root test. Our results are showing that there is significant association between crude oil prices, macroeconomic variables on the stock market of Malaysia .Hence, final analysis is showing that the major responsible bank of Malaysia should control the dwindling position on interest rate and focus on the transparency system for developing the confidence level of all investors