Research purpose: The research study was carried out to determine the impact of macroeconomic variation on manufacturing stock prices in Nigeria between the period 2003 to 2022.
Methodology: It used the manufacturing All Share Index (ASI) as the stock prices and Interest rate, inflation, GDP, Exchange rate as proxy for macroeconomic variables. The study adopted ARDL and ECM models as the statistical tools to process the extracted data based on various statistical diagnoses (unit root test and cointegration test) under short-run and long run periods.
Findings: The findings from the selected macroeconomic variables i.e. Inflation, Interest rate, foreign exchange and economic growth were able to account for above 90% variation in the manufacturing stock price, which further validated the strong influence of these variables on the manufacturing stock price in Nigeria.
Conclusion: In summary, it could be deduced that inflation rate, economic growth, foreign exchange and current interest rate posit a strong negative influence on the manufacturing stock price, while previous/past inflation rate and interest rate show a stronger positive influence on the variation in the manufacturing stock price in Nigeria.
Recommendation: The researchers thereby recommended that investors should ensure exploring fundamental analysis against technical analysis in stock market decision making and at the same time the manufacturing sector should understand the correlational relationship between their stock markets and macroeconomics variables.
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