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Price fluctuation of Brent futures and the impact on stock prices of oil companies in Malaysia

This study aims to investigate the impact of crude oil market price fluctuations on public listed oil companies in Malaysia. Individual stocks of oil producers and refineries were selected instead of stock market indexes. This study employed autoregressive distributed lag bounds test approach with w...

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Main Authors: Izaan Azyan Abdul Jamil, Lim Thieng Sang, Mori bin Kogid, Caroline Geetha
Format: Proceedings
Language:English
English
Published: Penerbit Universiti Malaysia Sabah 2022
Subjects:
HB221-236 Price
HD9502-9502.5 Energy industries. Energy policy. Fuel trade
HG4551-4598 Stock exchanges
Online Access:https://eprints.ums.edu.my/id/eprint/40921/1/ABSTRACT.pdf
https://eprints.ums.edu.my/id/eprint/40921/4/FULLTEXT.pdf
https://eprints.ums.edu.my/id/eprint/40921/
https://www.researchgate.net/publication/364744995_Price_Fluctuation_of_Brent_Futures_and_the_Impact_on_Stock_Prices_of_Oil_Companies_in_Malaysia
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spelling my.ums.eprints.409212024-09-09T07:23:43Z https://eprints.ums.edu.my/id/eprint/40921/ Price fluctuation of Brent futures and the impact on stock prices of oil companies in Malaysia Izaan Azyan Abdul Jamil Lim Thieng Sang Mori bin Kogid Caroline Geetha HB221-236 Price HD9502-9502.5 Energy industries. Energy policy. Fuel trade HG4551-4598 Stock exchanges This study aims to investigate the impact of crude oil market price fluctuations on public listed oil companies in Malaysia. Individual stocks of oil producers and refineries were selected instead of stock market indexes. This study employed autoregressive distributed lag bounds test approach with weekly data spanning from January 2011 until June 2022. The study found statistical evidence of a cointegration relationship between Brent Futures with stock prices of PETRONAS Chemical, PETRONAS Gas, Hibiscus Petroleum, and Petron Malaysia indicating potential co-movement towards long-run equilibrium. On top of that, substantial statistical evidence of causal impact is also found from Brent Futures to the stock prices of oil companies implying the significant role of Brent futures in influencing the stock prices behaviour of oil companies in Malaysia. The empirical results of this study will be able to assist the fund managers of these companies or retail investors in making investment decisions and hedging strategies. Penerbit Universiti Malaysia Sabah 2022-10 Proceedings PeerReviewed text en https://eprints.ums.edu.my/id/eprint/40921/1/ABSTRACT.pdf text en https://eprints.ums.edu.my/id/eprint/40921/4/FULLTEXT.pdf Izaan Azyan Abdul Jamil and Lim Thieng Sang and Mori bin Kogid and Caroline Geetha (2022) Price fluctuation of Brent futures and the impact on stock prices of oil companies in Malaysia. https://www.researchgate.net/publication/364744995_Price_Fluctuation_of_Brent_Futures_and_the_Impact_on_Stock_Prices_of_Oil_Companies_in_Malaysia
institution Universiti Malaysia Sabah
building UMS Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Malaysia Sabah
content_source UMS Institutional Repository
url_provider http://eprints.ums.edu.my/
language English
English
topic HB221-236 Price
HD9502-9502.5 Energy industries. Energy policy. Fuel trade
HG4551-4598 Stock exchanges
spellingShingle HB221-236 Price
HD9502-9502.5 Energy industries. Energy policy. Fuel trade
HG4551-4598 Stock exchanges
Izaan Azyan Abdul Jamil
Lim Thieng Sang
Mori bin Kogid
Caroline Geetha
Price fluctuation of Brent futures and the impact on stock prices of oil companies in Malaysia
description This study aims to investigate the impact of crude oil market price fluctuations on public listed oil companies in Malaysia. Individual stocks of oil producers and refineries were selected instead of stock market indexes. This study employed autoregressive distributed lag bounds test approach with weekly data spanning from January 2011 until June 2022. The study found statistical evidence of a cointegration relationship between Brent Futures with stock prices of PETRONAS Chemical, PETRONAS Gas, Hibiscus Petroleum, and Petron Malaysia indicating potential co-movement towards long-run equilibrium. On top of that, substantial statistical evidence of causal impact is also found from Brent Futures to the stock prices of oil companies implying the significant role of Brent futures in influencing the stock prices behaviour of oil companies in Malaysia. The empirical results of this study will be able to assist the fund managers of these companies or retail investors in making investment decisions and hedging strategies.
format Proceedings
author Izaan Azyan Abdul Jamil
Lim Thieng Sang
Mori bin Kogid
Caroline Geetha
author_facet Izaan Azyan Abdul Jamil
Lim Thieng Sang
Mori bin Kogid
Caroline Geetha
author_sort Izaan Azyan Abdul Jamil
title Price fluctuation of Brent futures and the impact on stock prices of oil companies in Malaysia
title_short Price fluctuation of Brent futures and the impact on stock prices of oil companies in Malaysia
title_full Price fluctuation of Brent futures and the impact on stock prices of oil companies in Malaysia
title_fullStr Price fluctuation of Brent futures and the impact on stock prices of oil companies in Malaysia
title_full_unstemmed Price fluctuation of Brent futures and the impact on stock prices of oil companies in Malaysia
title_sort price fluctuation of brent futures and the impact on stock prices of oil companies in malaysia
publisher Penerbit Universiti Malaysia Sabah
publishDate 2022
url https://eprints.ums.edu.my/id/eprint/40921/1/ABSTRACT.pdf
https://eprints.ums.edu.my/id/eprint/40921/4/FULLTEXT.pdf
https://eprints.ums.edu.my/id/eprint/40921/
https://www.researchgate.net/publication/364744995_Price_Fluctuation_of_Brent_Futures_and_the_Impact_on_Stock_Prices_of_Oil_Companies_in_Malaysia
_version_ 1811684114687852544
score 13.223943

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