Stock market performance in Pakistan linked to macroeconomic variables, study finds.
The study looked at how four economic factors in Pakistan affect stock prices. They found a strong connection between stock prices and consumer prices, industrial production, exchange rate, and interest rates. Consumer prices only lead to stock prices, while the other factors have a two-way relationship with stock prices in the long term. Short-term changes in interest rates can also impact stock prices. Overall, the health of the stock market and the economy are closely linked in the long run.