The impact of oil price changes on stock prices evidence from HoChiMinh stock exchange (HOSE) 2010-2015
Abstract
This study examines the impact of the movements of domestic gasoline prices and local oil prices on VN Index. The testing period is from January, 2010 to December, 2015 with monthly data series collected by reliable sources. The investigation is divided into two models. One model concludes three independent variables gasoline prices, inflation and exchange rate while the other model replaces gasoline prices by oil prices variable. Johansen cointegration test and Granger causality test are applied to examine the relationship between those variables. The results indicate that there is no long term correlation among those variables. By regression analysis, gasoline prices or oil prices as well as inflation and exchange rate have no significant relation to VN Index as a model.