Scientific Papers


© CSR, 2008-2019
ISSN: 2306-3483 (Online), 2071-8330 (Print)

83nd percentile
Powered by  Scopus

Directory of Open Access Journals (DOAJ)

Strike Plagiarism


Sectoral sensitivity of Oman stock market to oil price movements

Vol. 14, No 1, 2021


Mohammad Anasweh


Department of Finance and Banking, School of Business, 

Mutah University, Jordan

Sectoral sensitivity of Oman stock market to oil price movements





Abstract. This study investigates Omani stock market responses to the decline in oil prices. It examines the effects at both market and sectoral levels, specifically to distinguish the sector reaction from the market reaction as a whole. The period of the study, covering 10 years from 2010-2019, experienced huge swings in oil prices. Using Granger causality and regression analysis, the results support the asymmetric sensitivity of stock market returns to oil price fluctuations. This study also concludes that the Omani stock market and its heterogeneous sectors differ in their responses to oil price fluctuations. Oman stock market is dealing with the drop in oil prices by reducing the dependence of certain sectors on oil revenues which would make them less susceptible to the decline in oil prices. Further studies, employing different methodologies to investigate other GCC stock markets, will increase our understanding of the dynamics between oil price fluctuations and GCC sectoral returns.


Received: April, 2020

1st Revision: September, 2020

Accepted: January, 2021


DOI: 10.14254/2071-8330.2021/14-1/15


JEL ClassificationG12, G15

KeywordsOman stock market, oil prices, GCC stock markets, Granger causality