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ROLES OF OIL & GAS EXPLORATION & MARKETING CO SECTOR OF KSE STOCK RETURN: MEASUREMENT AND DETERMINATION |
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| รหัสดีโอไอ | |
| Creator | Muhammad Faheem, Anwer Irshad Burney |
| Title | ROLES OF OIL & GAS EXPLORATION & MARKETING CO SECTOR OF KSE STOCK RETURN: MEASUREMENT AND DETERMINATION |
| Contributor | Ahsanullah |
| Publisher | TuEngr Group |
| Publication Year | 2563 |
| Journal Title | International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies |
| Journal Vol. | 11 |
| Journal No. | 1 |
| Page no. | 11A01K: 1-11 |
| Keyword | Macroeconomic Variables, Augmented Dickey-Fuller test, Co-Integration test, Return of investment, Firms' return, Karachi Stock Exchange (KSE100). |
| URL Website | http://TuEngr.com/Vol11_1.html |
| Website title | ITJEMAST V11(1) 2020 |
| ISSN | 2228-9860 |
| Abstract | The performance of a stock exchange does reflect the economic and financial health of a country whose economic variables affect a firm's returns. Both long-run and short-run connections with the macroeconomic variables influence the fluctuation share prices and return on investment. The purpose of the study in hand is to examine and analyze the relationship of macroeconomic variables of the national economy with KSE stock returns and to provide critical guidance to investors' interest in the stock exchange trade. A sample of stock returns of 6 firms from Oil & Gas Exploration & Marketing Companies was selected on a monthly basis. The monthly data of eight variables over the maximum period of 11 years was used for analysis. The variables comprised of Market 100 Index (KSE 100), Broad Money, Exchange Rate, Interest Rate, Consumer Price Index, Gold Prices, Foreign Direct Investment, and Foreign Exchange Reserve. The Augmented Dickey-Fuller test and Co-integration were applied to obtain long-run, positive/negative and significant results (5%) respect to Oil & Gas Sector return with CPI, DR, EXRATE, FDI, GPRICE, KSE 100, and M2 (T>2). FEXRES modestly affected the returns of Oil & Gas Sector. In respect of Oil & Gas Dev. Co, a major component of the sector, the coefficient (ECT) is positive and significant showing 100% impact on stock return. The coefficient is statistically insignificant of Mari Petroleum Company Ltd, Shell Pakistan Ltd, and has a negative sign in case of Pakistan Oil Fields Ltd, Pakistan State Oil Co. Ltd, Attock Petroleum Ltd. The obvious connection of the study is that the macroeconomic variables of the national economy affect the return and investment in the stock exchange trade. |
