The Impact of Gold, Oil Prices, and their Associated Implied Volatilities on Performance of Pakistan’s Stock Market

Abstract

This study examined the asymmetrical implications of gold and oil prices, as well as the implied volatility that goes along with them, on the performance of Pakistan's stock market. It was used Chicago Board of Options Exchange’s GVZ and OVX index for measuring volatility in gold market and oil market respectively due to more uncertainty in commodity markets and also took historical price movements, investor’s expectations regarding global prices into account. The monthly data used from October 2009 to January 2023. An ARDL approach was employed for checking short term and long term asymmetrical. The results of ARDL revealed that oil volatility index have significant impact of Pakistan’s stock market in short-run and long-run. The Gold Volatility Index shows significant impact after one month on both stock market capitalization and KSE 100 indexes in the short run. Fluctuations in worldwide commodity prices have a significant influence on underdeveloped economies like Pakistan and have a negative effect on the entire economy. The volatility and fluctuations in oil prices lead to higher production costs, which create uncertainty in companies' cash flows.

The Impact of External Financial Factors on the Effect of Ecological Innovation on Small and Medium-Sized Businesses Performance, Capacity for the Sustainability Economy

“…The most crucial phase in managing practical improvement suggestions with store network executives is the green store network board (Kineber et al, 2022). The concept of "green retail network" on the board has not yet been agreed upon by the hypothetical circle, with experts characterizing the term according to their own examination goals and issues to be addressed (Bhatti et al, 2023). A few academics have recently described The green store network (Yu & Khan, 2022).…”