SPECULATIVE BUBBLE AND ITS EXISTENCE IN STOCK MARKET OF PAKISTAN

This empirical study is an attempt to detect speculative bubbles in different indexes of the Pakistan stock market (KSE-100, KSE-30 & KMI-30) using monthly time series data from (2005– 2020) evaluate all four Rtadf (Recursive, Right tail Augmented Dickey-Fuller) tests. includes Standard ADF, Rolling-window Supreme ADF (SADF) and Generalized SADF (GSADF) with Monte-Carlo simulation, under Gaussian assumptions. The findings this confirm two prominent episodes exuberance collapse multiple KSE-100 index while only a single (multiple) KMI-30 RADF GSADF results, other words, suggest among tests, are better models past PSX. These results contribute scarce literature through testing date stamping (PSX) use (all) right-tailed For future research, advanced techniques can be employed predict along their direction.