Examining Key Macroeconomic Factors Influencing the Stock Market Performance: Evidence from Tanzania

This study reflects on assessment of the micro economic factor hindering the growth of Dar es Salaam stock exchange market. The study intends to determine the factors influencing the development of Dar es Salaam stock exchange market. Four constructs based on the theory such as money supply exchange rate, inflation rate and interest rate were considered. The study followed the positivism approach where variables were analyzed quantitatively The multiple regression model is used to relate variables and stock exchange performance at Dar es salaam stock market. Findings in this study revealed that, four investigated variables in this study, one which is interest rate is found to have the hypothesized negative relationship with Dar es Salaam stock exchange index. The inflation rate, exchange rate and money supply were statistically insignificant explaining the variability of Dar es salaam stock exchange market. Although the research recommended that, the government should manage well the micro economic policies in order to give confidence to our investors and attract new investors. Researchers can use the study findings and explore on more variables that were not used in this paper, such research can even use different modeling techniques to investigate the variables in the study.