Tag Archives: Market Volatility

Impact of GDP, Inflation and Interest rate on Karachi Stock Exchange (Review Completed - Accepted)

This study aims to explore the economic factors which affect the investment in Karachi Stock Exchange (KSE) Pakistan. In any country its economic factors such as Real Gross Domestic Product (GDP), inflation and interest rate have a significant influence on investors to invest in the stock market. Therefore to determine the impact of these variables, we have conducted a cross sectional study and analyzed the past 21years (1990-2010) secondary data of our independent variables real GDP, inflation and interest rates and for relating these variables with the investment in KSE, we have taken KSE 100 index The analysis of secondary data shows that GDP has a strong positive correlation with investment in KSE, inflation has also strong positive correlation with it interest rate is negatively correlated with investment in KSE. The investors can use the data and information of inflation, interest rate and GDP to predict the stock prices trend and increase their return on investment.

Keywords: Impact GDP on KSE, Impact Inflation on KSE, Impact Interest rate on KSE, KSE volatility, Karachi stock market, Macro-economic factors, Market Volatility

The effect of Risk and Stock Market Volatility on stock return: a study of listed Pharmaceutical Companies in Pakistan (KSE). (Review Completed - Accepted)

This study explores the relationship between risk and return; the quantitative analysis has been carried out on all the Pharmaceutical companies listed on KSE. The research has been conducted on the basis of secondary data. The daily data has been used for analysis of last 10 years. Dependent variable is return, independent variables are market volatility which is measured by beta and the other is risk which is measured by Standard deviation. More than one thousand observations have been taken and analyzed. Results show that there is positive relationship between return and market volatility which means when volatility is higher than the return will also be higher. When Market risk premium is positive then company’s stock return will also be positive and when market risk premium is negative then return of company’s stock will also be lower. Results also show that there is positive relationship between risk and excess return

Keywords: Market Volatility, Pharmaceutical Companies (KSE), Risk, Stock Return