IMPACT OF MACRO-ECONOMIC VARIABLES ON THE PERFORMANCE OF STOCK EXCHANGE OF PAKISTAN

Abstract

Purpose: A deep investigation was done to find the effects that the variables of macro economic put upon the performance ofstocks exchange of Pakistan. Methodology & Design: For analyzation ofresults in the study ofresearch, data statistics, facts and figure are considered to a series on time. And least square method used to identify results for the sample size which is country Pakistan’s and its macroeconomic data for the years 2004 to 2018. Findings: Outcomes extracted from the study that the rate of exchange, inflation and the rate ofinterest appeared to be insignificant and negative impact to variables that are chosen as dependent like, stock market capitalization and stock market return. While exchange rate appeared to be significant and negative relation to stock market value traded and stock market value traded had impacted positively insignificant by the inflation. Therefore, rate ofinterest gives the effects negative significant to the value traded in stock market restricted within Pakistan. Because the is restricted therefore it is not possible to generalizing the Limitations: Following research paper has been scope of this research paper is results of this study. On the other hand, the deviation and minor changes has been observed while taken out data from the respective websites for the research, but it is assumed that the data is authentic. Meanwhile it is also assumed in this research paper that the government has constant economic policies.