Abstract:
The current research paper studied that how stock prices of Petroleum and Fertilizer
sectors of Pakistan is affected due to Risk, Inflation Rate, Exchange Rate and Interest Rate. This
research paper also helpful to the investors as well as some other institutions and individuals who
are involved in buying and selling of securities of stocks for the selection of Portfolio from Both
Sectors. A sample of five companies are taken from each sectors. Time series and Historical data
from 2010 to 2014 is used for the Calculation of Mean return, standard deviation and coefficient
of variation to analyses the volatility in stocks. SPSS software is used to see the impact of
selected variables like inflation, interest and exchange rate on stock prices of Petroleum and
Fertilizer Sectors of Pakistan. Results shows that from Petroleum sector Pakistan Petroleum is
best performing company while Mari Petroleum is worst performing company. Similarly in
Fertilizer sector Fauji Fertilizer is best performing Company and Engro is not performing well
because its mean return is in negative and if investor want to make portfolio from both sectors
then investor should invest in the stocks of Pakistan Petroleum Limited and Fauji Fertilizer
Limited Because these companies are best performing companies and less risky as compare to
the other companies.
