Download or read book Economic Activity of Oil Price Volatility and Stock Market Behaviour written by Saad AlShahrani and published by . This book was released on 2013 with total page 9 pages. Available in PDF, EPUB and Kindle. Book excerpt: Using an auto-regressive distributed lag (ARDL) model approach, this paper empirically attempts to shed light on the dynamic relationship between oil prices and the total real stock prices in Saudi Arabia, one of the fastest growing economies in the Middle East and North Africa and the largest oil producing country in the world, with a large current account surplus. The seemingly unrelated regression estimation (SURE) model is used to study the economic activity of oil price fluctuations on each sector of the stock market sectors. Then, we test the hypothesis of whether the current market value of total stock in Saudi Arabia significantly depends upon the lagged market value of stock and real oil prices, and which sectors of the Stock Market are not significantly influenced by changes in oil prices. Findings suggest that oil price movements affect the macro-economy and oil price movements affect economic activity. Further, this study suggests oil prices can play a big role in explaining stock price movements.