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The study accomplishes a healthy endeavor to investigate the short run and the long run impact of macroeconomic variables on stock exchange prices in case of Pakistan. The relationship between macroeconomic variables and stock exchange prices has earned indispensable attention to study for the flourishment of the business activity and the economic prosperity. To analyze the relationship, the monthly time series data ranges from January 1999 to June 2016 is utilized. The time series properties of data show mixed order of integration that compelled us to employ ARDL technique that provides short run and long run effects of macroeconomic variables on stock prices. The evidence of existence of co-integration among the series is granted through bound testing procedure. The results of the study leave important implications for the policy makers. Keywords: Karachi Stock Exchange; Macroeconomic factors; ARDL; Pakistan

Pervez Iqbal, Sajjad Nawaz, Zeeshan Umer. (2017) Impact of macroeconomic fundamentals on stock exchange market: Empirical evidence from Pakistan, Paradigms , Vol 11, Issue 1.
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