FACTORS AFFECTING STOCK PRICE OF MALAYSIAN PROPERTY SECTOR COMPANIES

Abstract

The property prices in Malaysia is on the rise, which might explain why the property transaction volume and value has been declining since 2015. Hence, Malaysian government has enacted multiple policies and incentives to sustain the development of property sector. These fluctuations in the sector affect performances of property sector companies, causing variation in speculators’ stock investment decision. As a result, investors need detailed information to determine which company’s stock should they invest into, while incurring lesser cost. The objective of this study is to determine the factors that affect stock prices of the companies in property sector. The variables are selected by main factors that affect stock prices, which are (1) macroeconomic factors, (2) company’s fundamental factors, and (3) technical factors. The model finds to have a high explanatory power with six out of eight selected variables are found to be significant estimators of share price. The findings provide a further understanding of Malaysia property sector that is lacking in literature. Moreover, it provides a better understanding of fundamental and technical factors impacting the performance of stock prices. This gives significant information to fellow academician, companies and investors in making informed decisions.