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Impact of Interest Rate on Stock Price, Analysis of Stock Movement of Fauji Fertilizer and Engro Corporation Limited: Evidence From Pakistan Stock Exchange

Author

Listed:
  • Muhammad Ibrahim Tiwano

    (MBA Scholar, Institute of Business Administration, University of Sindh, Jamshoro, Sindh 76080, Pakistan)

  • Feroz Khan Laghari

    (MBA Scholar, Institute of Business Administration, University of Sindh, Jamshoro, Sindh 76080, Pakistan)

  • Muhammad Fahad

    (MS Finance Scholar, Institute of Business Management Sciences, University of Agriculture, Faisalabad, Pakistan)

  • Shahzaib Akram

    (MBA Scholar, Institute of Business Management Sciences, University of Agriculture, Faisalabad, Pakistan)

  • Laraib Zaman

    (MS Finance Scholar, Institute of Business Management Sciences, University of Agriculture, Faisalabad, Pakistan)

Abstract

The objective of this study is to evaluate the impact of interest rate on Pakistani stock market price. Take a teen year ending data from 2009 to 2018 of two companies which is listed in Pakistan stock market (PSX) Fauji fertilizer and Engro Corporation limited. MATLAB tool is used for analysis the secondary data of interest rate and both companies stock price. Study uses the correlation and linear regression approaches in order to evaluate the impact of interest rate on stock price of both companies, the result shows the link between interest rates and stocks is favorable. As the interest rate is increase or decrease the stock price of both companies are increase or decrease.

Suggested Citation

  • Muhammad Ibrahim Tiwano & Feroz Khan Laghari & Muhammad Fahad & Shahzaib Akram & Laraib Zaman, 2024. "Impact of Interest Rate on Stock Price, Analysis of Stock Movement of Fauji Fertilizer and Engro Corporation Limited: Evidence From Pakistan Stock Exchange," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 13(1), pages 202-208.
    • Handle: RePEc:rfh:bbejor:v:13:y:2024:i:1:p:202-208
    DOI: https://doi.org/10.61506/01.00189
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    References listed on IDEAS

    as
    1. Sabo Muhammad & Rabi¡¯U Saminu Jibril & Usman Sani K/Wambai & Fatima Bello Ibrahim & Tjjani Habibu Ahmad, 2015. "The Effect of Working Capital Management on Corporate Profitability: Evidence from Nigerian Food Product Firms," Applied Finance and Accounting, Redfame publishing, vol. 1(2), pages 55-63, August.
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