EFFECTS OF PETROLEUM PRICES ON THE STOCK MARKETS: AN APPLICATION ON BIST 100

Since oi lprices are an important in put to economic activity, the effect of the increase in oil prices on stock markets is significant. With this study, the relationship between oil prices and B？ST 100 index in Turkey, 2009 - 2018 period were examined using log data. Firstly, the relationship between variables was examined by correlation test and then ADF (1981) and PP (1988) unitroot tests were applied to determine the stationarity ratings of the series. According to unitroot test results also shows that the first difference of each variable is stationary. The causality between the series was investigated by using the Frequency Domain Causality Analysis developed by Breitung and Candelon (2006) and the asymmetric causality test developed by Hatemi J (2012). According to the results obtained from the frequency domain causality test, it is understood that there is only short-term causality from Brent oil prices to BIST 100 index. However, according to the results of the asymmetric causality test, no causal relationship between oil prices and stocks was found. Given the results of both causality tests, it has been reached that there is nocausality between two variables in the long run