Abstract:
This research is undertaken to investigate the relationship between the stock prices
and the oil and gold prices, exchange rate and inflation. This investigation will
help the investors to make informed decision and make batter portfolio choses. The
research will also provide bases of the researcher who further want to explore this
topic. The nature of relationship is found in this study,
The sample size is nine, the industry is oil and gas, duration of the period under
investigation is ten years. The data form 2004 – 2014 was analyzed using trend
analysis and the relationship between the independent variables and dependent
variables are calculated by the use of regression analysis.
It is found in trend analysis that in 2009 inflation reached highest point, oil prices
were also very high and there was also a sharp decrease in rupee value against
dollar and during the same time the stock prices also declines. In the regression
the association of oil prices with stock prices are negative so are the correlation of
exchange rate or dollar prices. There is a strong negative correlation of stock
prices with inflation.
Key world: Exchange rate, oil prices, Gold prices Stock prices, stock returns, oil
and gas Pakistan.
