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PETROLEUM AND FOOD SECTORS LOST STOCK RETURNS AGAINST INVESTMENTS IN PSX

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10 Pages : 99-111

http://dx.doi.org/10.31703/gmsr.2021(VI-I).10      10.31703/gmsr.2021(VI-I).10      Published : Mar 2021

Petroleum and Food Sectors Lost Stock Returns against Investments in PSX

Abstract

    The impact of exchange rate exposure and market return on stock returns of petroleum and food sectors PSX listed firms has been investigated empirically. Two econometric models formulated based on the Jorion approach of the two-factor model have been analyzed for petroleum and food sectors stock returns, market return and exchange rate (i.e., USD) for the study period 2005-2012, which represent an era of military regime proceeded by the democratic government of Pakistan Peoples Party. A sample of 37 petroleum and food sectors listed firms have been evaluated by applying the unit root test and OLS multiple regression. Further, the Quandt-Andrews test of unknown breakpoint has been applied, which showed an extended structural break during the period 2007 to 2010. Additionally, the results revealed that the coefficients of exchange rate and market return are negatively related to petroleum and food sectors stock returns. Therefore, investors must take precautions before investing funds in stocks of food and petroleum sector firms.

    Petroleum Sector, Food Sector, Stock Returns, Exchange Rate Exposure, Market Return

    (1) Syed Muhammad Ali Tirmizi
    Associate Professor, Department of Business Administration, Faculty of Management Sciences, Foundation University Islamabad, Pakistan.
    (2) Haider Ali
    CEO Impex Pakistan, The Mall, Wah Cantt., Punjab, Pakistan.
    (3) Sharif Ullah Jan
    Lecturer, Department of Management Sciences, FATA University, FR Kohat, KP, Pakistan.
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Cite this article

APA

    APA : Tirmizi, S. M. A., Ali, H., & Jan, S. U. (2021). Petroleum and Food Sectors Lost Stock Returns against Investments in PSX. Global Management Sciences Review, VI(I), 99-111. https://doi.org/10.31703/gmsr.2021(VI-I).10

CHICAGO

    CHICAGO : Tirmizi, Syed Muhammad Ali, Haider Ali, and Sharif Ullah Jan. 2021. "Petroleum and Food Sectors Lost Stock Returns against Investments in PSX." Global Management Sciences Review, VI (I): 99-111 doi: 10.31703/gmsr.2021(VI-I).10

HARVARD

    HARVARD : TIRMIZI, S. M. A., ALI, H. & JAN, S. U. 2021. Petroleum and Food Sectors Lost Stock Returns against Investments in PSX. Global Management Sciences Review, VI, 99-111.

MHRA

    MHRA : Tirmizi, Syed Muhammad Ali, Haider Ali, and Sharif Ullah Jan. 2021. "Petroleum and Food Sectors Lost Stock Returns against Investments in PSX." Global Management Sciences Review, VI: 99-111

MLA

    MLA : Tirmizi, Syed Muhammad Ali, Haider Ali, and Sharif Ullah Jan. "Petroleum and Food Sectors Lost Stock Returns against Investments in PSX." Global Management Sciences Review, VI.I (2021): 99-111 Print.

OXFORD

    OXFORD : Tirmizi, Syed Muhammad Ali, Ali, Haider, and Jan, Sharif Ullah (2021), "Petroleum and Food Sectors Lost Stock Returns against Investments in PSX", Global Management Sciences Review, VI (I), 99-111

TURABIAN

    TURABIAN : Tirmizi, Syed Muhammad Ali, Haider Ali, and Sharif Ullah Jan. "Petroleum and Food Sectors Lost Stock Returns against Investments in PSX." Global Management Sciences Review VI, no. I (2021): 99-111. https://doi.org/10.31703/gmsr.2021(VI-I).10