The Impact of Inflation on Pakistan Stock Exchange

Abstract

The aim of the study is to determine the impact of inflation on equity prices in Pakistan's economy. The examination time frame is 2012-2018; monthly information was gathered from the State Bank of Pakistan and the Pakistan Stock Exchange. The information was dissected utilizing the relapse model and factual consequences of these investigations to demonstrate a negative connection among expansion and stock costs. All exploration as of late has demonstrated that inflation and stock costs have a positive relationship universally. Some studies, however, indicated that inflation and equity prices were negative. In general, the stock market provides an overview of investors whether they want to invest in the financial market. Equity prices also affect inflation.

Keywords Stock price, Inflation, Karachi Stock Exchange, KSE 100 index, CPI

DOI: 10.7176/EJBM/11-16-11

Publication date:June 30^th 2019