Shock Effects on Stocks in Pakistan

Abstract

This research examines the shock or extraordinary effects on stocks in Pakistan of the given time period. The shocks could be positive or negative depending upon the variety of reasons ranging from company news to general economic conditions. In Pakistan, very few studies have been conducted on this issue. This study identifies the major shocks within specific period according to a specified criterion by using descriptive analysis mainly includes means, maximum & minimum of the data and standard deviations. The data consists of 2 years daily closing stock prices from the relevant resources. They are arranged and analyzed in Microsoft Excel and also with the help of SPSS software. It is concluded from the analysis that there were a number of major positive and negative shocks in the Pakistani stock market within the last 2 years especially in the year 2005.