Investigating the Influence of Economic and Financial Factors on the Share Market

Authors

Muhammad Abdullah Idrees(1) Muhammad Abdullah Idrees Corresponding author Affiliation Hamdard University, Pakistan Email addressm.abdullahidrees91@gmail.com Other articles by this author , Ayesha Khan(2) Ayesha Khan Affiliation Bahria University, Pakistan Other articles by this author , Sumera Mehmood(3) Sumera Mehmood Affiliation Iqra University, Pakistan Other articles by this author

  1. Hamdard University, Pakistan
  2. Bahria University, Pakistan
  3. Iqra University, Pakistan

https://doi.org/10.36923/jcmi.v4i2.553

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Abstract

This study investigates the interconnection and influence of factors including Financial and Macroeconomic on Share Market Returns. It aims to comprehend how a range of factors influence diverse economies due to varying market conditions and supply-demand dynamics. Employing a quantitative approach grounded in the Post Positivism Paradigm, this study employs Jonas & Mishkin (2004) monetary policy mechanisms as the conceptual framework. The PSX-100 index serves as a substitution for evaluating share market returns, utilizing data spanning a decade from June 2012 to July 2023. Correlation Analysis unveils a negative linkage between Inflation, Interest rates, and Exchange rates, while demonstrating a positive correlation between Industrial Production and share market returns. This investigation furnishes valuable insights for investors keen on comprehending the risk-return dynamics in share market investments, while also establishing a robust foundation for future investigations into related domains.

Article information

Keywords
Macroeconomic IndicatorsFinancial IndicatorsShare Market ReturnCorrelation Analysis
Section
Articles
Issue
Vol. 4 No. 2 (2023)
Submitted
October 5, 2023
Accepted
December 11, 2023
Published
December 11, 2023
Corresponding author
Muhammad Abdullah Idrees
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