Download This PaperThe Exchange Rate Exposure and Stock Performance of Pakistan Banking Institution
ur Rehman, M. Z., Mohsin, M., & Baig, S. A. THE EXCHANGE RATE EXPOSURE AND STOCK PERFORMANCE OF PAKISTAN BANKING INSTITUTION.
13 Pages Posted: 20 May 2020
Date Written: January 4, 2020
Abstract
The stock market plays a central role to uplift the financial status of the corporations, and there are direct influences of the stock exchange fluctuation on the stock market for performing multiple business activities. The main objective of this study is to scrutinize the exchange rate disclosure, along with the financial returns of Pakistani banking institutes. The global investment community adds value to the new existing markets; that’s why the fluctuation of market and capitalization returns were increased speedily as it is discussed in this paper. The amplified market model is directly linked with such kinds of relationships. In this study, approximately, top ten banks from the private and public sectors are selected, which are both kinds of banks, Islamic and conventional banking systems. It is estimated that there would be high market returns of banks with the continuous change in return benchmarks as well as the exchange rates. As in the view of the short and long run, the performances of the banking sector in the KSE 100 Index have impacts upon the antecedents. In this paper, all results of every bank are discussed separately. All these results display the diverse kinds of tendencies towards the returns of the bank in the long and short term. Not even every currency is exposed to the highest exchange rate for all of the banks; conversely, JPY, GBP, and USD are indicators of the performance of the stock exchange. The market members like financial specialists, merchants, intermediaries, and controllers give their viewpoints about the high unpredictability in the stock exchange. The members not only consider the unpredictability of stock exchange as the mega proportion of the risks but they are also worried about intemperate instability which shows variance in stock returns, having no specific earmarks for joining any significant news about the market basics or firm.
Keywords: Banking Sectors, Exchange Rate, Stock Performance, Return Benchmarks.
JEL Classification: C220, G210
Suggested Citation: Suggested Citation