Impact of Brexit on construction stocks listed on Bursa Malaysia
The British exit from the European Union (Brexit) referendum conducted in the United Kingdom (UK) about remaining in the European Union (EU) has had a profound effect on the world economy. Stock markets across the globe bore the brunt and pound sterling weakened sharply on this announcement. However...
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| Format: | Conference or Workshop Item |
| Language: | English |
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KnE Social Sciences
2019
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| Subjects: | |
| Online Access: | http://umpir.ump.edu.my/id/eprint/25884/1/Impact%20of%20brexit%20on%20construction%20stocks%20listed.pdf |
| _version_ | 1825812875004870656 |
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| author | Senthil Kumar, T. Mohd Ridzuan, Darun Mohammad, Aslam |
| author_facet | Senthil Kumar, T. Mohd Ridzuan, Darun Mohammad, Aslam |
| author_sort | Senthil Kumar, T. |
| collection | UMP |
| description | The British exit from the European Union (Brexit) referendum conducted in the United Kingdom (UK) about remaining in the European Union (EU) has had a profound effect on the world economy. Stock markets across the globe bore the brunt and pound sterling weakened sharply on this announcement. However, not all the economies were affected in the same way and the effect ranged from no impact to high impact. Economies which had considerable exposure to the UK, were affected. Though Malaysia does not have highly significant trade connections with the UK, the construction sector has moderate exposure to UK investments. In this study, construction companies’ stock price movement during the Brexit announcement was analyzed using the Event Study Methodology. Ten publicly traded construction companies were randomly selected and their stock returns were compared with the KCI Market Index returns. The returns were very volatile and showed a negative trend during the first few days around the Brexit announcement indicating that there was an insignificant short-term impact. However, the shock was quickly absorbed and the stock returns stabilized in a few days implying that the Brexit announcement did not have a significant long-term impact on construction company stocks in Malaysia. |
| first_indexed | 2024-03-06T12:35:37Z |
| format | Conference or Workshop Item |
| id | UMPir25884 |
| institution | Universiti Malaysia Pahang |
| language | English |
| last_indexed | 2024-03-06T12:35:37Z |
| publishDate | 2019 |
| publisher | KnE Social Sciences |
| record_format | dspace |
| spelling | UMPir258842019-11-19T08:04:55Z http://umpir.ump.edu.my/id/eprint/25884/ Impact of Brexit on construction stocks listed on Bursa Malaysia Senthil Kumar, T. Mohd Ridzuan, Darun Mohammad, Aslam HD Industries. Land use. Labor HG Finance TH Building construction The British exit from the European Union (Brexit) referendum conducted in the United Kingdom (UK) about remaining in the European Union (EU) has had a profound effect on the world economy. Stock markets across the globe bore the brunt and pound sterling weakened sharply on this announcement. However, not all the economies were affected in the same way and the effect ranged from no impact to high impact. Economies which had considerable exposure to the UK, were affected. Though Malaysia does not have highly significant trade connections with the UK, the construction sector has moderate exposure to UK investments. In this study, construction companies’ stock price movement during the Brexit announcement was analyzed using the Event Study Methodology. Ten publicly traded construction companies were randomly selected and their stock returns were compared with the KCI Market Index returns. The returns were very volatile and showed a negative trend during the first few days around the Brexit announcement indicating that there was an insignificant short-term impact. However, the shock was quickly absorbed and the stock returns stabilized in a few days implying that the Brexit announcement did not have a significant long-term impact on construction company stocks in Malaysia. KnE Social Sciences 2019-08-18 Conference or Workshop Item PeerReviewed pdf en cc_by_4 http://umpir.ump.edu.my/id/eprint/25884/1/Impact%20of%20brexit%20on%20construction%20stocks%20listed.pdf Senthil Kumar, T. and Mohd Ridzuan, Darun and Mohammad, Aslam (2019) Impact of Brexit on construction stocks listed on Bursa Malaysia. In: KnE Social Sciences: FGIC 2nd Conference on Governance and Integrity 2019 , 19-20 August 2019 , Yayasan Pahang, Kuantan, Pahang, Malaysia. pp. 176-188., 2019. ISSN 2518-668X (Published) https://doi.org/10.18502/kss.v3i22.5050 |
| spellingShingle | HD Industries. Land use. Labor HG Finance TH Building construction Senthil Kumar, T. Mohd Ridzuan, Darun Mohammad, Aslam Impact of Brexit on construction stocks listed on Bursa Malaysia |
| title | Impact of Brexit on construction stocks listed on Bursa Malaysia |
| title_full | Impact of Brexit on construction stocks listed on Bursa Malaysia |
| title_fullStr | Impact of Brexit on construction stocks listed on Bursa Malaysia |
| title_full_unstemmed | Impact of Brexit on construction stocks listed on Bursa Malaysia |
| title_short | Impact of Brexit on construction stocks listed on Bursa Malaysia |
| title_sort | impact of brexit on construction stocks listed on bursa malaysia |
| topic | HD Industries. Land use. Labor HG Finance TH Building construction |
| url | http://umpir.ump.edu.my/id/eprint/25884/1/Impact%20of%20brexit%20on%20construction%20stocks%20listed.pdf |
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