Comovement Between Pakistani Equity Market and BRICS Countries: An Investigation Through Co-Integration Analysis


  • Zahirullah Zahir University of Peshawar
  • Adeel Rahim Sarhad University of Science & IT, Peshawar


This study is conducted to check the co-movement between the equity markets of BRICS countries that is Brazil, Russia, India and China with Pakistan. These countries are selected because they are world emerging markets. Co-movement is checked through co-integration analysis. Ten years monthly stock indices are taken for analysis that is from July 2006 to June 2016. No cointegration is found between Pakistani equity market and the BRICS countries. So, this favours the international portfolio investors. Furthermore, Brazilian market is found to be the most attractive market for the portfolio investors in order to maximize their wealth by minimizing their risk levels. The future research can be extended by using high frequency data in order to check the comovement and cointegration.

Author Biographies

Zahirullah Zahir, University of Peshawar

PhD Scholar

Adeel Rahim, Sarhad University of Science & IT, Peshawar

Department of Business Administration


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