Oil Prices & Stock Market: Evidence from KSE & BSE
Oil prices are changing day to day depending upon different factors that force it to fluctuate. Oil prices have a very devastating effect on every field of life .oil prices effects differently depending upon the nature of users. This paper is going to study the impact of oil price fluctuations on the stock market of some of the Asian countries. Asian countries are sub segmented into oil importing countries and exporting countries each of which effects differently on the oil price change. The significance of the study is that there should be a clear distinction between all of the countries that oil prices effects differently to different countries. It is important to have an effect of different countries separately on the oil price changes instead of having on some of the specific country we cannot derive any conclusion regarding that if one country in being affected at certain level than how come the other country could also be affected at the same level, Oil prices have a negative effect on the stock market of oil importing countries and a positive effect on the stock market of oil exporting countries. The reasons have been discussed in the paper.
Oil Prices, Karachi Stock Market, Bombay Stock Market
Afia Malik, (2001) “Crude Oil Price, Monetary Policy and Output: Case of Pakistan, Journal of Monetary Economics, Vol.38, pp. 215-220.
Achraf Ghorbel, (2008), “Response of international stock markets to oil price shocks”, Journal of Econometrics, vol 74, pp 3–30
Abdul et al, (2010) “Oil Prices, Exchange Rates and Emerging Stock Markets” September, Global Finance Journal, vol 17, pp. 224-251
Al-Fayoumi, N. A., Khamees, B. A., & Al-Thuneibat, A. A. (2009). Information transmission among stock return indexes: evidence from the Jordanian stock market. International Research Journal of Finance and Economics, vol 24, pp. 194-208.
Amano, R. A., & Van Norden, S. (1998). Oil prices and the rise and fall of the US real exchange rate. Journal of international Money and finance, vol.17 (2), pp. 299-316.
Chu-Chia et al, (2009) “Relationships between Oil Price Shocks and Stock Market: An Empirical Analysis from the Greater China”, Econometrics Journal vol 7, pp. 476-504.
Cheng, H-F,Gutierrez, M.,Mahajan, A.,Shachmurove, Y. and Shahrokhi, M. 2007. A future global economy to be built by BRICs, Global Finance Journal, vol 18, pp. 143-156
Chung, (2010), “The impact of oil price shocks on the three BRIC countries’ stock prices” Econometrics Journal vol 7, pp. 576-584.
Denial et al, (2009), “oil prices shocks and the stock market”, the journal of Finance, vol: 51, pp 463-491.
El Hedi,(2006) “On the short-term influence of oil price changes on stock markets in GCC countries , Global Finance Journal, vol 17, pp224-251.
Gerben Driesprong et al ,(2004) , “Stock Markets and Oil Prices”, Journal of finance, vol :46 ,pp 690-700
Chen, J., Hong, H., & Stein, J. C. (2002). Breadth of ownership and stock returns. Journal of financial Economics, vol. 66(2), pp. 171-205.
Jiménez-Rodríguez, R., & Sanchez, M. (2005). Oil price shocks and real GDP growth: empirical evidence for some OECD countries. Applied economics, vol. 37(2), pp. 201-228.
James D. Hamilton, (2008), “understanding the crude oil prices, journal of economics, vol 32, pp. 1389—1393.
Kaul, G., & Seyhun, H. N. (1990). Relative price variability, real shocks, and the stock market. The Journal of Finance, vol. 45(2), pp. 479-496.
Noreen, (2006), “Does Oil Price Transmit to Emerging Stock Returns: A case study of Pakistan Economy, Journal of Monetary Economics (48) pp 465-512.
Norasibah et al, (2001) “Stock prices movements: does change in energy price matters”, journal of business, vol: 2, pp 383-403.
Papapetrou, E. (2001). Oil price shocks, stock market, economic activity and employment in Greece. Energy Economics, vol. 23(5), pp. 511-532.
Perry Sadorsky, (2000),” Oil price shocks and stock market activity”, journal of finance, vol:22, 200-226
Paresh, (1993), “Modeling the impact of oil prices on Vietnam’s stock prices”, Journal of Economic Dynamics and Control, vol 28, pp 349-366.
Sadorsky, P. (1999). Oil price shocks and stock market activity. Energy Economics, vol. 21(5), pp. 449-469.
Sadorsky, P., & Henriques, I. (2001). Multifactor risk and the stock returns of Canadian paper and forest products companies. Forest Policy and Economics, vol. 3(3), pp. 199-208.
Stanislav, (2006) “A ten-year retrospective on the determinants of Russian stock returns” Global Finance Journal, vol11, pp.129-149.
Samuel, (2010), “impact of oil prices on stock market”, Global Journal of Finance and Banking Issues Vol. 4. pp. 40-45.