Authors :
Ngele Marcs Kilonzo; Dr. Fredick Ndede
Volume/Issue :
Volume 8 - 2023, Issue 9 - September
Google Scholar :
https://bit.ly/3TmGbDi
Scribd :
https://tinyurl.com/54epmt4r
DOI :
https://doi.org/10.5281/zenodo.8416640
Abstract :
The NSE20 Share Index, reliably used as the
benchmark index during the period 2013–2021, appeared
to have an unswerving decay, demonstrating a falling-
apart market performance within the Kenyan securities
exchange. This decline raised concerns among various
stakeholders. As a result, the study investigated how
macroeconomic factors influence stock market
performance at the Nairobi Securities Exchange in
Kenya. The research was conducted from January 2013
to December 2021 using an exploratory research design
and employed the cointegration analysis method to
analyze the data. The target population was 27 annual
average macroeconomic variable performances for
selected variables. Secondary data information was
collected from the Central Bank of Kenya, the Kenya
National Bureau of Statistics and the Nairobi Securities
Exchange. The findings uncovered a measurably critical
affiliation between the exchange rate and stock market
performance, where an increment within the exchange
rate drives a diminish in stock market performance by -
0.11 units. Consequently, an increment in the Treasury
bill rate would lead to an increment in stock market
performance of 0.139 units, and Treasury bills have
shown a factually critical affiliation with the stock market
performance. The study prescribed that the government
reinforce surveillance on the regulatory framework to
strengthen its monetary and fiscal policies and screen
macroeconomic variables. Furthermore, it suggested
further research on the topic, exploring the use of
macroeconomic variables to mitigate the adverse effects
they have on stock market performance.
Keywords :
stock market performance, market index, macroeconomic variables,
The NSE20 Share Index, reliably used as the
benchmark index during the period 2013–2021, appeared
to have an unswerving decay, demonstrating a falling-
apart market performance within the Kenyan securities
exchange. This decline raised concerns among various
stakeholders. As a result, the study investigated how
macroeconomic factors influence stock market
performance at the Nairobi Securities Exchange in
Kenya. The research was conducted from January 2013
to December 2021 using an exploratory research design
and employed the cointegration analysis method to
analyze the data. The target population was 27 annual
average macroeconomic variable performances for
selected variables. Secondary data information was
collected from the Central Bank of Kenya, the Kenya
National Bureau of Statistics and the Nairobi Securities
Exchange. The findings uncovered a measurably critical
affiliation between the exchange rate and stock market
performance, where an increment within the exchange
rate drives a diminish in stock market performance by -
0.11 units. Consequently, an increment in the Treasury
bill rate would lead to an increment in stock market
performance of 0.139 units, and Treasury bills have
shown a factually critical affiliation with the stock market
performance. The study prescribed that the government
reinforce surveillance on the regulatory framework to
strengthen its monetary and fiscal policies and screen
macroeconomic variables. Furthermore, it suggested
further research on the topic, exploring the use of
macroeconomic variables to mitigate the adverse effects
they have on stock market performance.
Keywords :
stock market performance, market index, macroeconomic variables,
