Interrelationship between Philippine Stock Exchange Services Sector Index and Selected Macroeconomic Indicators

摘要

Objectives: This study aims to analyze the relationship of the Philippine Stock Exchange Services Index price performance and selected macroeconomic indicators using its quarterly data, tracing the effect of independent to the dependent variable. Methods/Statistical Analysis: The researcher gathered the data from the Philippine Stock Exchange, Bangko Sentral Ng Pilipinas, Philippine Statistics Authority, and other reliable sources. These data are analyzed with the use of statistical correlation of the dependent and independent variables. The researcher also used linear regression to determine the most significant variables and remove the insignificant. Using the statistical tool paired T-test, the researcher was able to prove the predicted value of the Philippine Stock Exchange Services Index price performance. Findings: The quantitative analyzation showed that the foreign exchange rate (USDPHP), inflation rate, and real gross domestic product greatly affect the price performance of the sector index, while interest rate and unemployment rate were classified insignificant variables. Application/Improvements: This can offer a guide to investors to establish their ideal investment portfolio to maximize the possible growth of the index based on the factors correlated to the dependent variable.