INTERDEPENDENCE OF SOUTH ASIAN & DEVELOPED STOCK MARKETS AND THEIR IMPACT ON KSE (PAKISTAN)
Journal Title: Asian Economic and Financial Review - Year 2013, Vol 3, Issue 1
Abstract
The objective of this study was to investigate the interdependence among the South Asian and developed markets and their impact on Karachi Stock Exchange. The data were collected from eight worldly stock exchanges, four from each South Asia and developed countries for the period starting from July, 1999 to June, 2011. For analytical purposes, the techniques like Correlation Matrix, Unit root, Co integration test and Granger Causality were applied. The correlation results indicated that there was no significant relationship between the South Asian and developed equity markets. However the equity market of US and India found correlated with each other individually. A bidirectional casual relationship was found between CSE and KSE through Granger Casual test. The Equity Markets of South Asia and Developed countries are not co integrated with each other. The international portfolio managers are advised to include Karachi Stock Markets in the developed market portfolios, because the Karachi Stock Market is not linked with the Developed world.
Authors and Affiliations
Safdar Hussain Tahir| Department of Banking & Finance, Government College University, Faisalabad (Pakistan), Hazoor Muhammad Sabir| Department of Economics, Government College University, Faisalabad (Pakistan), Yasir Ali| MS Scholar, Banking & Finance Government College University Faisalabad (Pakistan), Saima Jamat Ali| MS Scholar, Banking & Finance Government College University Faisalabad (Pakistan), Ammara Ismail| Advances & Foreign Trade Incharge, First Women Bank, Faisalabad (Pakistan)
Keywords
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