The Impact of Oil Prices on the Stock Market and Real Exchange Rate: The Case of Kazakhstan

Authors

  • Dinmukhamed Kelesbayev Khoja Akhmet Yassawi International Kazakh-Turkish University, Turkestan, Kazakstan. https://orcid.org/0000-0002-4193-8121
  • Kundyz Myrzabekkyzy Khoja Akhmet Yassawi International Kazakh-Turkish University, Turkestan, Kazakstan.
  • Artur Bolganbayev Khoja Akhmet Yassawi International Kazakh-Turkish University, Turkestan, Kazakstan.
  • Sabit Baimaganbetov Khoja Akhmet Yassawi International Kazakh-Turkish University, Turkestan, Kazakstan.

DOI:

https://doi.org/10.32479/ijeep.11880

Abstract

In this study, the relationship between KASE stock market closing prices and oil prices is analyzed using ADF and Zivot-Andrews' (1992) unit root tests and monthly data for the period of 2016-2021. First, the variables are tested for causality. Results show that there is a causal relationship between the real exchange rate and closing prices and between oil prices and the real exchange rate. The short-term effects of the variables are investigated using the VAR method. Results show that Brent crude oil prices have a positive effect on KASE closing prices, while the real exchange rate has a negative effect. In conclusion, changes in oil prices affect the formation of stock prices.

Keywords:

Oil Price, KASE Stock Market Closing Prices, Real Exchange Rate

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Author Biography

Dinmukhamed Kelesbayev, Khoja Akhmet Yassawi International Kazakh-Turkish University, Turkestan, Kazakstan.

Assoc. Prof. Dr.

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Published

2022-01-19

How to Cite

Kelesbayev, D., Myrzabekkyzy, K., Bolganbayev, A., & Baimaganbetov, S. (2022). The Impact of Oil Prices on the Stock Market and Real Exchange Rate: The Case of Kazakhstan. International Journal of Energy Economics and Policy, 12(1), 163–168. https://doi.org/10.32479/ijeep.11880

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Articles