Testing for Seasonal Integration and Cointegration: An Expository Note with Empirical Application to KLSE Stock Price Data

The purpose of this paper is to investigate the seasonal properties of the sectoral stock price series at the Kuala Lumpur Stock Exchange (KLSE) for the period 1978:1 to 1992:3. Our results suggest that the stock price indices at the KLSE exhibit seasonal unit roots, not only at the zero frequency...

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Main Author: Habibullah, Muzafar Shah
Format: Article
Language:English
English
Published: Universiti Putra Malaysia Press 1998
Online Access:http://psasir.upm.edu.my/id/eprint/3211/
http://psasir.upm.edu.my/id/eprint/3211/1/Testing_for_Seasonal_Integration_and_Cointegration.pdf
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author Habibullah, Muzafar Shah
author_facet Habibullah, Muzafar Shah
author_sort Habibullah, Muzafar Shah
building UPM Institutional Repository
collection Online Access
description The purpose of this paper is to investigate the seasonal properties of the sectoral stock price series at the Kuala Lumpur Stock Exchange (KLSE) for the period 1978:1 to 1992:3. Our results suggest that the stock price indices at the KLSE exhibit seasonal unit roots, not only at the zero frequency, but in most cases at the biannual frequency. The finding that stock price indices exhibit seasonal integration has important implications for seasonal cointegration. However, our seasonal cointegration test results suggest that sectoral stock price indices at the KLSE are not seasonally cointegrated. These results imply that the informationally efficient stock market hypothesis cannot be rejected for the KLSE.
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spelling upm-32112013-05-27T07:06:29Z http://psasir.upm.edu.my/id/eprint/3211/ Testing for Seasonal Integration and Cointegration: An Expository Note with Empirical Application to KLSE Stock Price Data Habibullah, Muzafar Shah The purpose of this paper is to investigate the seasonal properties of the sectoral stock price series at the Kuala Lumpur Stock Exchange (KLSE) for the period 1978:1 to 1992:3. Our results suggest that the stock price indices at the KLSE exhibit seasonal unit roots, not only at the zero frequency, but in most cases at the biannual frequency. The finding that stock price indices exhibit seasonal integration has important implications for seasonal cointegration. However, our seasonal cointegration test results suggest that sectoral stock price indices at the KLSE are not seasonally cointegrated. These results imply that the informationally efficient stock market hypothesis cannot be rejected for the KLSE. Universiti Putra Malaysia Press 1998 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/3211/1/Testing_for_Seasonal_Integration_and_Cointegration.pdf Habibullah, Muzafar Shah (1998) Testing for Seasonal Integration and Cointegration: An Expository Note with Empirical Application to KLSE Stock Price Data. Pertanika Journal of Social Sciences & Humanities, 6 (2). pp. 113-123. ISSN 0128-7702 English
spellingShingle Habibullah, Muzafar Shah
Testing for Seasonal Integration and Cointegration: An Expository Note with Empirical Application to KLSE Stock Price Data
title Testing for Seasonal Integration and Cointegration: An Expository Note with Empirical Application to KLSE Stock Price Data
title_full Testing for Seasonal Integration and Cointegration: An Expository Note with Empirical Application to KLSE Stock Price Data
title_fullStr Testing for Seasonal Integration and Cointegration: An Expository Note with Empirical Application to KLSE Stock Price Data
title_full_unstemmed Testing for Seasonal Integration and Cointegration: An Expository Note with Empirical Application to KLSE Stock Price Data
title_short Testing for Seasonal Integration and Cointegration: An Expository Note with Empirical Application to KLSE Stock Price Data
title_sort testing for seasonal integration and cointegration: an expository note with empirical application to klse stock price data
url http://psasir.upm.edu.my/id/eprint/3211/
http://psasir.upm.edu.my/id/eprint/3211/1/Testing_for_Seasonal_Integration_and_Cointegration.pdf