Abstract
Due to global financial crisis, around the all over the world all developing and under developing countries are facing the low trading profit. In most of the developing country like Pakistan, there is low investment level due to political instability. Due to this condition Karachi stock exchange has the worst sell .Karachi stock exchange is known as the oldest and more profitable stock exchange of Pakistan oil and gold prices are attracting investors towards there not in the stock exchange. This thing is the barrier for the progress of the development of the country. This paper is trying to expose that stock market is going to down due to these variables. For checking the impact of oil and gold prices on the Karachi stock exchange. We have used that secondary data for this study. For this purpose we have taken data from Karachi stock exchanges from the period of 1996 to 2013.We have applies correlation matrix for this purpose. the result has shown that KSE 100 has return is 0.014503 and GDP 0.058793 ,gold 0.012026 and oil 0.00919.karachi stock exchange return has standard value is 0.089982,while gold standard deviation 0.038716 and oil standard deviation value is 0.103375. The correlations have shown that in these markets there is not positive relationship.karachi stock exchange and GDP have inverse relationship with gold market. These results have also shown that oil growth has a significant relationship with KSE100 and GDP.For the predication correlation is not considering an authentic measure.
Highlights
Investment is such money which is put away for the purpose of future use
We have used that secondary data for this study. For this purpose we have taken data from Karachi stock exchanges from the period of 1996 to 2013.We have applies correlation matrix for this purpose. the result has shown that KSE 100 has return is 0.014503 and GDP 0.058793,gold 0.012026 and oil 0.00919.karachi stock exchange return has standard value is 0.089982,while gold standard deviation 0.038716 and oil standard deviation value is 0.103375
The correlations have shown that in these markets there is not positive relationship.karachi stock exchange and GDP have inverse relationship with gold market. These results have shown that oil growth has a significant relationship with KSE100 and GDP.For the predication correlation is not considering an authentic measure
Summary
Investment is such money which is put away for the purpose of future use. There is a lot of way through which investors can invest their money for example in the shape of gold, foreign currency etc .In the shape of investment of gold investors have found significant benefits. Past studies have proved that there is significant relationship between gold prices and stock market. It could be consider the gold as a safe heaven investment. The purpose of this study is to show the relationship between stock market and oil and gold prices. We try to explore that investors would like to invest in stock market or gold prices. There is reserved work related to impact of oil crisis on the stock exchange. There are three main researchers related to explore the impact of oil prices on the stock exchange. According to Kabul [5] oil prices increases and decrease have impact on the growth of any economy.
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