Abstract
All over the world, the regulatory bodies work to achieve the maximum
efficiency in the financial markets. Only in the presence of efficiency and
feasible economic conditions, a stock market can perform efficiently and
will reflect the real picture. It had been being commonly observed that stock
market in Pakistan has shown a good picture when other economic
indicators were in undesirable zone, and vice versa. The objective of this
paper is to evaluate the critical factors that have the major impact on KSE100 Index and market capitalization. To inculcate confidence among the
investors, and to promote the capital market, evaluate the investors’
investment decisions leading to market capitalization the research paper
addresses those critical factors that have the major impact over the KSE
Index. The dependent variable is KSE 100 Index and independent variables
are rate of interest, exchange rates, foreign direct investments and the
inflation rate. It includes yearly data of the dependent variable and
independent variables for last 14 years. The data is analyzed using
regression analysis
Muzaffar Asad, M. Ali Farooq. (2009) Factor Influencing KSE 100 Index / Share Pricing, Paradigms , Vol 3, Issue 1 .
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