THE RELATIONSHIP BETWEEN OIL PRICES AND STOCK PRICES: EVIDENCE FROM BIST SECTORS

Authors : Mesut ASLAN

Pages : 196-215

Doi:10.53092/duiibfd.1213095

View : 77 | Download : 59

Publication Date : 2023-05-30

Article Type : Research Paper

Abstract :One of the most important energy resources in the world oil plays an important role in the economy. Nowadays, oil has the feature of being the most preferred energy source with a share of 33% in energy consumption in the global arena. In addition to the fact that oil prices affect economic activity, it is generally thought that oil prices are affected by stock prices. The aim of this study is to examine the long- and short-term relationship between stock prices and oil prices in the sectors covered by Borsa Istanbul insert ignore into journalissuearticles values(BIST); through daily data for the 2003-2021 period. Vector error correction model insert ignore into journalissuearticles values(VECM); and Granger causality test based on Vector Auto-Regressive insert ignore into journalissuearticles values(VAR); system were used. According to the results, there is no causality relationship from oil prices to stock prices, but there is a causal relationship from stock prices to oil prices. Therefore, it has been suggested that investors operating in the oil market should follow the changes in stock prices.
Keywords : BIST, Hisse Senedi, Granger Nedensellik Testi

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