Does Macro-Economic Indicators Effect on Pakistan Stock Exchange?

Author(s)

Muhammad Kamran , Prof Dr. Fatih YASAR ,

Download Full PDF Pages: 01-09 | Views: 435 | Downloads: 139 | DOI: 10.5281/zenodo.5797796

Volume 10 - November 2021 (11)

Abstract

Stock market is a great reflection of economics development of country. The main purpose of stock market is to perform as moderator among investor and borrowers. In this study, macro-economic indicators are taken as independent variables (Inflation, Money supply, Foreign direct investment, GDP per capita, GDP saving, Balance of trade, interest rate) and stock exchange prices as dependent variable. To analyzing this relationship, we used 11 years data of selected macro-economic indicators and further to elaborating this relationship, descriptive statistic, correlation analysis, granger causality test and regression analysis have been used. The finding of the study has shown that the 76% economic indicators are involved for bring variation in stock market movement and to cover rest of scenario other forces are involved (political and business influences). In a continuity of finding description, expect that FDI all other variable has positive effect of dependent variables. Hence, it is recommended that government should obtain counteractive policies (Fiscal & monetary) to manage macro-economic influences for country development.

Keywords

Macro-Economic, Pakistan Stock Exchange

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