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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Main Authors:	Senthil Kumar, T., Mohd Ridzuan, Darun, Mohammad, Aslam
Format:	Conference or Workshop Item
Language:	English
Published:	KnE Social Sciences 2019
Subjects:	HD Industries. Land use. Labor HG Finance TH Building construction
Online Access:	http://umpir.ump.edu.my/id/eprint/25884/ http://umpir.ump.edu.my/id/eprint/25884/ http://umpir.ump.edu.my/id/eprint/25884/1/Impact%20of%20brexit%20on%20construction%20stocks%20listed.pdf

id	ump-25884
recordtype	eprints
spelling	ump-258842019-11-19T08:04:55Z 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 https://doi.org/10.18502/kss.v3i22.5050
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Malaysia Pahang
building	UMP Institutional Repository
collection	Online Access
language	English
topic	HD Industries. Land use. Labor HG Finance TH Building construction
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
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.
format	Conference or Workshop Item
author	Senthil Kumar, T. Mohd Ridzuan, Darun Mohammad, Aslam
author_facet	Senthil Kumar, T. Mohd Ridzuan, Darun Mohammad, Aslam
author_sort	Senthil Kumar, T.
title	Impact of Brexit on construction stocks listed on Bursa Malaysia
title_short	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_sort	impact of brexit on construction stocks listed on bursa malaysia
publisher	KnE Social Sciences
publishDate	2019
url	http://umpir.ump.edu.my/id/eprint/25884/ http://umpir.ump.edu.my/id/eprint/25884/ http://umpir.ump.edu.my/id/eprint/25884/1/Impact%20of%20brexit%20on%20construction%20stocks%20listed.pdf
first_indexed	2023-09-18T22:39:59Z
last_indexed	2023-09-18T22:39:59Z
_version_	1777416850211078144

Impact of Brexit on construction stocks listed on Bursa Malaysia

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