Impact of Macro Variables on Karachi Stock Exchange
Rabia N* and Khakan N
University of Lahore, Lahore, Pakistan
- *Corresponding Author:
- Rabia N
University of Lahore
Tel: +92 42 111 865 865
E-mail: [email protected]
Received Date: September 04, 2015; Accepted Date: October 09, 2015; Published Date: October 17, 2015
Citation: Rabia N, Khakan N (2015) Impact of Macro Variables on Karachi Stock Exchange. J Tourism Hospit 4:173. doi:10.4172/2167-0269.1000173
Copyright: © 2015 Rabia N, et al. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
In this paper we have discussed that stock market of any country act as a predictor of the economy. We have discussed about the role of Pakistani stock markets. There is different topic of stock market in Pakistan but we are discussing Karachi stock exchange. In the case of Pakistan scenario it can be say that Pakistani stock market is act as the true predictor of economic activities. In this paper the impact of macro variables on Karachi stock exchange was studied. Karachi stock exchange is very interesting topic for the discussion. Karachi stock exchange is known as one of the oldest stock exchange of Asia and largest stock exchange of Pakistan. Karachi stock exchange is the dependent variables and inflation, interest rate and exchange rate are the independent variables. The increase and decrease the stock prices will affect the performance of the economy. In this paper researcher want to found out the fundamental marc variables which have impact on stock exchange and also want to found out that what are the impact of these variables on the government policies like monetary and facial policy. Multiple regression models were used which show dependent and independent variables have weak relationship. The interest rate, inflation rate, and exchange rate weak relationship shows with stock market. Exchange rate has insignificant relation with stock market therefore foreign investment is risk free. In Pakistan exchange rate, interest rate and inflation rate have no relationship with stock market of Karachi.