However, other studies have found a stronger relationship between oil prices and stock market performance in GCC. Therefore, evidence shows a strong long-run relationship in Bahrain between oil price fluctuation and stock market performance that took the cue from oil prices. Other evidence also justifies that shocks attributable to volatility attract many concerns in GCC than shocks attached to oil price returns. In the subsequent discussion of this article, I, therefore, expand on the short and long-term relationship between stock market performance and oil price movement in the GCC countries.The analysis of the relationships between stock market performance and oil price fluctuations is executed both at country and industry levels. The evidence shows that at the country level, with the exception of Kuwait, stock markets have great positive exposures to oil prices shocks. However, at the industry level, the reactions of industry-specific returns to oil price movements are greatly positive for 12 of the 20 countries studied. Therefore, oil price alterations indicate the asymmetric impact on stock market returns in the country alongside the industry level.
The Gulf Cooperation Council