ABSTRACT

The study empirically investigated the effect of macroeconomic factors on stock market performance using time series data from 1995 to 2017. The macroeconomic factors considered were real gross domestic product, money supply, exchange rate and interest rate, while stock market performance was measured by all share index. Multiple regression analysis was carried out on the data collected. The results showed that real gross domestic product and money supply were positive and significant in affecting stock market performance, while interest rate and exchange rate were insignificant. It was recommended among other things Government should ensure that the economy of Nigeria is well diversified by encouraging investments in other key economic sectors so as to boost stock market performance.

TABLE OF CONTENTS

Title Page i

Declaration ii

Certification iii

Dedication iv

Acknowledgement v

Table of Contents vi

Abstract viii

CHAPTER ONE

1.0 Introduction 1

1.1 Background to the Study 1

1.2 Statement of the Problem 2

1.3 Objectives of the Study 4

1.4 Research Questions 4

1.5 Research Hypotheses 4

1.6 Significance of the Study 5

1.7 Scope of the Study 5

CHAPTER TWO

2.0 Review of Related Literature 6

2.1 Conceptual Literature 6

2.1.1 Stock Market 6

2.1.2 Micro economic Factors 7

2.1.2.1 Inflation 7

2.1.2.2 Exchange Rate 8

2.1.2.3 Money Supply 8

2.2.2.4 Real Gross Domestic Product 9

2.1.3 Micro economics Determinants of Stock Market performance 9

2.2 Theoretical Framework 11

2.2.1 The Purchasing Power Parity (PPP) 14

2.3 Empirical Literature           15

CHAPTER THREE

3.0 Research Methodology 21

3.1 Research Design 21

3.2 Model Specification 21

3.2.1 Description of Research Variables 22

3.3 Technique of data analysis 23

3.3.1 Statistical Criteria 23

3.4 Sources of Data Collection 23

3.4.1 Secondary Data 24

CHAPTER FOUR

4.0 Data Presentation, Data Analysis and Discussion of Findings 25

4.1 Data Presentation 25

4.1.1 Descriptive Analysis 26

4.2 Analysis and Discussion of findings 27

4.2.1 Regression Analysis 27

4.2.2 Testing hypotheses 28

CHAPTER FIVE

5.0 Summary of findings, conclusion and recommendations 30

5.1 Summary of Findings 30

5.2 Conclusion 30

5.3 Recommendations 30

Reference

Appendix