Due to global financial crisis, around the all over the world all developing and under developing countries are\nfacing the low trading profit. In most of the developing country like Pakistan, there is low investment level due to\npolitical instability. Due to this condition Karachi stock exchange has the worst sell. Karachi stock exchange is known\nas the oldest and more profitable stock exchange of Pakistan. Oil and gold prices are attracting investors towards\nthere not in the stock exchange. This thing is the barrier for the progress of the development of the country. This\npaper is trying to expose that stock market is going to down due to these variables. For checking the impact of oil\nand gold prices on the Karachi stock exchange we have used that secondary data for this study. For this purpose we\nhave taken data from Karachi stock exchanges from the period of 1996 to 2013. We have applies correlation matrix\nfor this purpose. The result has shown that KSE 100 has return is 0.014503 and GDP 0.058793, gold 0.012026 and\noil 0.00919. Karachi stock exchange return has standard value is 0.089982, while gold standard deviation 0.038716\nand oil standard deviation value is 0.103375. The correlations have shown that in these markets there is not positive\nrelationship. Karachi stock exchange and GDP have inverse relationship with gold market. These results have also\nshown that oil growth has a significant relationship with KSE100 and GDP. For the predication correlation is not\nconsidering an authentic measure.
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