Abstract:
Performance of stock market in relation to change in oil prices and exchange rate has been
examined and historical data ofseven years quarterly from 2014 to first quarter of 2022 has been
collected from SBP, OGRA, PSO, DPS PSX and United Kingdom exchange rates website.
This research has been organized to compute the relationship of macroeconomic factors oil prices
and exchange rates on performance of stock market through descriptive statistics, bivariate
correlation and regression analysis as stock market provides the platform for individuals to gain
profit on their income through investment, enables firms and organizations to share and mitigate
their risks and establish their businesses and also helps the state in earning tax revenue, therefore
understanding the relationship between oil prices, exchange rate and stock market, factors
impacting the progress ofstock market in an economy and how these factors affects the decision
making of investors and attitude of market is essential. The results display that there is a positive
autocorrelation between variables. Prediction regarding stock returns can be estimated by investors
by understanding the factors affecting it performance and can enhance the knowledge of
stakeholders making equity market more active and emerging.
