Download or read book Oil Prices and GCC Stock Markets New Evidence from Smooth Transition Models written by Nidhaleddine Ben Cheikh and published by International Monetary Fund. This book was released on 2018-05-09 with total page 35 pages. Available in PDF, EPUB and Kindle. Book excerpt: Our paper examines the effect of oil price changes on Gulf Cooperation Council (GCC) stock markets using nonlinear smooth transition regression (STR) models. Contrary to conventional wisdom, our empirical results reveal that GCC stock markets do not have similar sensitivities to oil price changes. We document the presence of stock market returns’ asymmetric reactions in some GCC countries, but not for others. In Kuwait’s case, negative oil price changes exert larger impacts on stock returns than positive oil price changes. When considering the asymmetry with respect to the magnitude of oil price variation, we find that Oman’s and Qatar’s stock markets are more sensitive to large oil price changes than to small ones. Our results highlight the importance of economic stabilization and reform policies that can potentially reduce the sensitivity of stock returns to oil price changes, especially with regard to the existence of asymmetric behavior.

Download or read book GCC Stock Markets at Risk written by Eckart Woertz and published by . This book was released on 2006 with total page 50 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book GCC Stock Markets written by Eckart Woertz and published by . This book was released on 2007 with total page 47 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Stock Market Developments in the Countries of the Gulf Cooperation Council written by Ahsan Mansur and published by Palgrave MacMillan. This book was released on 2008-10-31 with total page 242 pages. Available in PDF, EPUB and Kindle. Book excerpt: "This book provides an analysis of the structural strengths and weaknesses of the Gulf stock markets and the appropriateness of policies implemented. It examines the effect of the 2006 correction on financial stability and economic growth and explains the differences in performance of some regional markets. This research integrates for the first time under a homogenous methodology the systematic analysis of all stock markets in the Gulf, identifies common trends and causes for differential behaviour and constitutes a key contribution toward the understanding of the functioning of the Gulf stock exchanges by domestic and foreign investors."--BOOK JACKET.

Download or read book The Impact of Business and Political News on the GCC Stock Markets written by Alanoud Al-Maadid and published by . This book was released on 2018 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper investigates the impact of business and political news on stock market returns in the Gulf Cooperation Council (GCC) countries. For this purpose, it employs a Markov switching model including a separate index for each of the two categories of news considered. The results indicate the importance of news as drivers of GCC stock returns, with business news playing a more substantial role; further, news released in the largest financial markets in the regions are found to have significant cross-border effects.

Download or read book Global and Regional Spillovers to GCC Equity Markets written by Tahsin Saadi Sedik and published by International Monetary Fund. This book was released on 2011-06-01 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper analyzes the impact of global and regional spillovers to GCC equity markets. GCC equity markets were impacted by spillovers from U.S. equity markets despite varying degrees of foreign participation. Spillovers from regional equity markets were also important but the magnitude of the effects were on average smaller than that from mature markets. The results also illustrated episodes of contagion in particular during the recent global financial crisis. The findings suggest that given the degree of openness, and open capital accounts the financial channel is an important source through which volatility is transmitted. In this regard, GCC equity markets are not immune from global and regional financial shocks. These findings refute the notion of decoupling between the GCC equity and global equity markets.

Download or read book Short term and Long term Stock Price Linkages Among the GCC Stock Markets and with the US Stock Market written by Naeem Muhammad and published by . This book was released on 2007 with total page 14 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Stock Markets in GCC Countries Risk and Volatility Analysis written by Ibrahim Onour and published by LAP Lambert Academic Publishing. This book was released on 2012 with total page 144 pages. Available in PDF, EPUB and Kindle. Book excerpt: A number of events that have been occurring in the past few years highlight the importance of capital markets in Gulf Cooperation Council (GCC) countries. As GCC capital markets became increasingly open to foreign investors in the past few years, they become more vulnerable to shocks in international markets, and thus more volatile. Also, the increasing cointegration among GCC markets increased the spillover effect of regional shocks, which in turn contributed towards increasing volatility in these markets. It is also to be noted that due to lack of sound regulatory policy in some of these markets, hyping, dumping and rumours become the main driving forces behind the frequent changes in stock prices. In addition, as GCC economies depend largely on crude oil revenue, volatility in oil prices in the past few years fuelled extreme stock price changes. The book combines research papers related to these type of issues.

Download or read book US Economic Policy Uncertainty Spillover on the Stock Markets of the GCC Countries written by Khandokar Istiak and published by . This book was released on 2019 with total page 25 pages. Available in PDF, EPUB and Kindle. Book excerpt: Purpose: We investigate the nature and degree of US economic policy uncertainty spillover on the stock markets of a group of nonconventional economies like the GCC countries, where risk-sharing based financial system is prominent and foreign investment, risk-free interest, derivatives, etc. are not as widespread as in Western economies. Design/methodology/approach: We employ the monthly data of 1992-2018, linear and nonlinear structural VAR models, and an impulse response-based test to explore the nature and degree of US economic policy uncertainty spillover on the stock markets of the GCC countries.Findings: We find that an unexpected increase in the US economic policy uncertainty significantly decreases the stock market index of all the GCC countries. We also get this relationship symmetric meaning that the GCC stock market indices decrease and increase by the same amount when the US economic policy uncertainty increases and decreases, respectively. Originality/value: This research investigates the characteristics of economic policy uncertainty spillover from the biggest economy of the world to the stock markets of the GCC region, which is new to the literature. Our results provide the first evidence that a risk-sharing based financial system does not necessarily protect the stock market from US uncertainty shock. However, the abundance of local investors, risk-sharing investment activities, the absence of derivatives, etc. may be responsible for the symmetric behavior of a stock market.

Download or read book The Influence of Oil and Other Macroeconomic Variables on GCC Stock Markets written by Loucine Khatchig Basmajian and published by . This book was released on 2013 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Stock Market Bubbles with Reference to GCC Countries written by Karim Saadallah Haroun and published by . This book was released on 2007 with total page 156 pages. Available in PDF, EPUB and Kindle. Book excerpt: In 2006 GCC stock markets experienced huge corrections which wiped out hundreds of billions of dollars worth of market capitalization. The extent of the decline was even more catastrophic in the long run for both Saudi Arabia and Dubai resu lting in a significant loss of income to many citizens in the region. In light o f the crash, the aim of this project is to provide a better understanding of mar ket bubbles and to address probable causes behind the GCC crash. After a general Introduction, Chapter 2 describes theoretical models behind market bubbles. Cha pter 3 highlights the historical occurrences of stock market booms and crashes c oncentrating on the hypotheses offered to explain the formation of these bubbles . Chapter 4 describes the boom and the recent crash of the stock markets in the GC C countries; three probable causes behind the crash are examined. The impact tha t IPO had on Saudi market performance is measured. We find that IPO had a downbe at effect on market performance, but that it did not trigger the crash. The role of fundamentals in the market was assessed. We find that prices were dictated b y noise rather than fundamentals and that expected growth was not high enough in order to justify valuations. Lastly we find that the activity of small or priva te investors has increased considerably in the market since 2003 and that during the "speculative attack" period small investors played an important role in dep reciating prices and causing "panic selling."

Download or read book Protection of Investors in GCC Stock Markets written by and published by . This book was released on 2007 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Interdependence in Gulf Cooperating Stock Markets written by John L. Simpson and published by . This book was released on 2010 with total page 22 pages. Available in PDF, EPUB and Kindle. Book excerpt: Historically, the stock and securities markets in the Gulf Cooperating Countries (GCC) have been limited in their capacity to raise international capital. Apart from the fact that many are simply not open to outside investment, they have been regarded as thinly traded, less liquid and less efficient than Western stock markets. Meaningful and comparable stock market data has only been gathered for less than four years. The GCC countries are striving to strengthen and expand their financial markets in relation to their listing, regulatory, trading and settlement procedures, as well as to improve transparency and informational efficiency. The GCC economies have much in common including their growing levels of economic development and trade integration, and also their collective contribution to world oil production. Bahrain has long been regarded as the most open of the GCC economies, but the question arises as to whether or not Bahrain drives the other GCC markets. This study focuses on both short and medium-term relationships using ordinary least squares regressions, vector auto regressive techniques, cointegration tests, pairwise causality, variance decomposition and impulse response analysis of daily indexed share market data to provide evidence of continuing cointegration and interdependence in stock markets in the GCC. Saudi Arabia and Kuwait markets are the major drivers of the other GCC markets.

Download or read book The Impact of the International Commodities Price Movements on the Stock Markets of the GCC Countries written by Nazo Assador Chopurian and published by . This book was released on 2017 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This research performs an empirical investigation on the impact of Energy, Agricultural and Metal commodities on the GCC stock markets. The study employs data from January 2005 to February 2017 with a weekly frequency. Utilizing Granger Causality, VAR Model, GARCH Model, Lucey and Baur (2010) model to test for the existence of safe haven and hedging effects, and Least Square method to test whether the energy commodities have symmetric or asymmetric impact on the stock markets of the GCC countries. The study finds that Agricultural commodities have safe haven and hedging effect on all the GCC stock indices. Whereas, Metal commodities have safe haven effect only on Saudi Arabia, Qatar, Oman, Kuwait and Abu Dhabi's stock markets but have hedging effect on all the GCC stock market. Moreover, Energy commodities do not have hedging effect on all the GCC stock markets and have asymmetric impact on all the GCC stock markets other than Qatar with Decreasing Energy prices having more significant ...

Download or read book Investor Behavior and the IPO Effect in the GCC Stock Markets written by Raed Michel Farah and published by . This book was released on 2008 with total page 94 pages. Available in PDF, EPUB and Kindle. Book excerpt: Empirical studies have covered the seasonal anomalies in stock market returns fr om an investor behavior point of view i.e. irrationality of investors creates th e January effect, the weekend effect, the turn-of-month effect, and the holiday effect. However, studies have not tackled investor behavior during IPO announcem ents. In the GCC stock market, investors have excess liquidity and are irrationa l in how much they invest upon hearing about an IPO announcement. This project s tudies investor behavior in the GCC stock market during IPOs by accounting for s tock market index returns and looking for anomalies during subscription periods. We do not find consistent evidence of seasonality even though individual (count ry) results show up in the analysis. In particular, we notice a pronounced effec t in cases like Saudi Arabia and Dubai, and a less obvious effect in cases like Oman and Bahrain. The effect is not noticed in Qatar and Kuwait. Furthermore, we notice a similar effect for the overall sample in the bubble and post-bubble pe riods but not in the pre-bubble period, which may be explained by the immaturity of the market during the pre-bubble period. We also notice that the market inde x kicks-off after the end of the subscription period and sustains its increase i n markets like Abu Dhabi, Oman, Qatar, Kuwait, and Saudi Arabia whereas in Dubai and Bahrain the market indices increase transiently only to reach a steady stat e later. Finally, we compare subscription period returns for the full period ver sus that for the first 5 days which are supposed to carry the bulk of the invest ments. We notice this trend in all GCC markets except in Saudi Arabia.

Download or read book The Impact of U S Energy Policy Bills on the GCC Stock Markets Conditional Variance written by Ranim Haidar and published by . This book was released on 2011 with total page 70 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Global Stock Markets and Portfolio Management written by S. Motamen-Samadian and published by Springer. This book was released on 2006-04-12 with total page 135 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book presents the latest empirical findings on stock markets in a number of emerging markets. The authors employ the latest techniques and provide valuable insights into each market, highlighting global integration, their potential for profitable investments and features that will be influential in global portfolio decision-making.