Abstract:
This research study explores the impact of different macro-economic factors on stock
prices of KSE-100 Index. To execute research study, data from last 10 years (2003 -
2013) was taken in consideration.
This research study was totally based on secondary data. Different statistical tests like
Pearson correlation and Regression analysis were used to analyze and interpret data.
Economic model was created in which 04 variables were takes as independent and 01
variables was dependent. Independent variables were interest rate, inflation rate,
exchange rate and GDP while dependent variable was stock prices of KSE-100 Index.
Data was collected from website of State Bank of Pakistan. Correlation among these
variables and overall significance & goodness of fit was analyzed.
It was analyzed that all the independent variables had some affect on KSE-100 Index
positively or negatively. Interest rate, Exchange rate and GDP had weak negative impact
of KSE-100 index while Inflation rate had moderate positive affect.
