RESEARCH PROPOSAL ON:

FACTORS AFFECT STOCK PRICE

By:

AKASH BATRA
FAHAD ASHRAF HAMMAD WALLY HUMZA TAHIR
T O:

MS. SALMA RAHMAN

LITERATURE REVIEW
Factors that fluctuate the stock price are :

Interest rate . Market Psychological Effect. Earnings, dividends, and cash flow. Rumors/News.

Economic Environment.
Oil prices/fraud /scams and other factors affecting stock markets. Investor sentiment in the market.

Political Uncertainty.
Exchange Rates effect on Stock Market. Inflation.

THEORETICAL FRAMEWORK

CONCEPTUAL FRAMEWORK

OBJECTIVE OF RESEARCH
To indentify factor that mostly effect share price. To indentify the unfavorable situation cause by these factory so then stakeholder can invest in a right way. To identify the core and main factor that can make the stock price to change.

RESEARCH QUESTIONS Q1. What is the impact of change in interest rate for Borrowings as set by State Bank
of Pakistan on Stock Prices?

Q2. What is the impact of Interest Rate for Savings on Stock Prices? Q3. What is the overall impact of change in discount rate on Stock Prices?

HYPOTHESIS H0: Change in Interest Rate on deposits/savings and Lending doesnt have an impact
on Stock Prices

HA: Change in Interest Rate on deposits/savings and Lending have an impact on

Stock Prices

DATA & METHODOLOGY

The application of our Research is Applied. Research Type is Co relational. Inquiry mode of the Research is Quantitative. Data Collection Method is Secondary. Extend of Researcher is Moderate. Stock prices of 10 companies from KSE-30 Index. Stock prices and volume traded would be observed at the end of each quarter. These changes would be observed for 5 days.

DATA COLLECTION METHOD

Data Collection

Secondary Data

Internet

Reports

Newspapers

Web sites

Annual Reports/ Other Reports

Business New Papers

Business/ economics E.g www.kse.com.pk, www.sbp.govpk

1. Public Reports 2. Companies Reports 3. Analyst's Reports

1. Dawn 2. Business Recorder 3. Economic Review Monthly

1. Blogs
2. Stock holder recommendations

1. Articles 2. News 3. Expert's Views

PROPOSED DATA ANALYSIS

Secondary data will be used to collect information. 10 companies from KSE-30 index and the volume of stocks traded during a day. The stock price of 10 companies from KSE-30 index will be observed on regular intervals at the end of every quarter for the past two years. Interest rate as announced by the State of Bank of Pakistan will also be noted at the end of each quarter for the past 2 years.

These two will be our variables among which interest rate is an independent variable
while stock price/volume is a dependent variable. In order to check the relationship co relational analysis & regression will be used to find the relationship.

Maxima and minima of changes in price will also be calculated to find on which
particular days the change in price of stocks was maximum and minimum corresponding to the interest rate of that particular period.

THANK YOU