James Ali Adeyi, Sebastian S. Maimako, Emmanuel Umoru Oki


This study examined the effects of macro-economic variables of inflation rate, interest rate, exchange rate and balance of trade on stock market performance in Nigeria using the Gross Domestic Product as a measure of economic growth for the period 1994-2013. The need to empirically determine the effect of these macro-economic variables on stock market performance in Nigeria arose as a result of its centrality in the national economy. Secondary data for this study was collected from Central Bank of Nigeria, Securities and Exchange Commission, Nigerian Stock Exchange and the annual reports and accounts of the companies sampled for the relevant years. Multiple regression analysis (ordinary least square) method of data analysis was employed to determine the effect of each of the macro-economic variables on stock market performance. Findings of the study indicate that inflation rate and stock market performance are negatively related 5% level of significance. Interest rate also showed a negative relationship with stock market performance at the chosen 5% level of significance. There is a positive but insignificant relationship at 5% level of
significance between exchange rate and All Share Index in Nigeria. The result on
balance of trade showed a positive and insignificant relationship while the coefficient of the control variable gross domestic product indicated that economic growth has a positive effect on the performance of stock market in Nigeria. It was recommended that for the stock market to take full advantage of various opportunities and cope with challenges, interest rates must be properly put at check.


Macro-Economic, Variable, stock, Market Performance, Gross, Domestic, Product, Economic Growth.

Full Text:



  • There are currently no refbacks.

International Journal of Management Science Research ISSN ISSN 2536 – 605X(Print)

Copyright: All rights reserved. No parts of this journal may be reproduced in any form; be it electronic, mechanic, photocopying, recording or otherwise without the prior written permission of the publisher.

To make sure that you can receive messages from us, please add the '' domain to your e-mail 'safe list'. If you do not receive e-mail in your 'inbox', check your 'bulk mail' or 'junk mail' folders…