Impact of Portfolio Investments on Stock Market Performance

Portfolio investment in the form of equity flows has a very important role in the economic sustainability and growth of investments for developing countries in the world, unless governments would ensure proper safety and risk of investor’s portfolio as well as give benefits to the investor would make sure the funds or money which emphasized and triggers foreign investment. In my research analysis, the requirements for data of some variables affecting stock market performance in the era of 1990-2010 and see the effects that would probably realizing the results. The statistical test that is applied and is conducted in the form of simple linear regression to check the influence of PI (equity flows to the stock market index and that of market volume of Karachi Stock Exchange-100 index). The results, given the information about portfolio investment which are equity flows has shown weak correlation or effect for index points and there is little predicting behavior shown, while market volume numbers effect equity flows and it remains insignificant.