Macroeconomic determinants of equity price in Pakistan

Stock Market or Equity Market is an essential part of economy. It serves as the mirror and health indicator of an economy through which the physical fitness of a country can be judged. In Pakistan with the increase of media and business studies, common public got awareness about Equity Market furthermore day by day increase in inflation and urge of people to be in accordance with the modern age demands some extra source of money so, stock market got attention. But still a mystification, perplexity and confusion occurs about the considerations, circumstances and causes which influence Equity Price. This book investigates the macroeconomic determinants of Equity Price in Pakistan. The macroeconomic variables are Inflation (CPI), Money Supply (M2), Exchange Rate (Re/US$), Economic Activity (Real GDP) and Interest Rate. The determinant market would be All Pakistan Listed Companies at Karachi Stock Exchange. The investigation would be conducted using Vector Error Correction Model (VECM). The research study and the results of the research study attempt its best and anticipates to help the researchers and all the stakeholders of Equity Price in Pakistan and the globe over.