FACTORS EFFECTING STOCK MARKET INDEX IN PSE

This paper examined the role of macroeconomic factors on stock indices. This study has measured economic factors with interest rate, foreign exchange currency, international trade, foreign exchange reserve. Monthly data are deployed of all the factors from January 2010 to April 2020. Pakistan Stock Exchange (PSE) index monthly data is used as dependent factor. The outcomes of multiple regression analysis indicated that there was a significant impact of international trade and foreign exchange reserve on PSE indices whereas exchange rate was relatively less important for the movement of stock indices as per the data for the given period. Finally, we could infer that there is still a lot to cover in this domain as we have also considered few selective factors and there can be more such factors which af ects the Indices performance