Analyse the effect of oil price changes on stock markets of the GCC.

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College of Business and Economics

Portfolio Management FINA 401

Assignment Spring 2015

Individual Report (5%)

The main aims of this assignment is to:

  • Use what you have learned in this course to analyse the effect of oil price changes on stock markets of the GCC.

 

This assignment is required to assess your written and analytical abilities to analyze the effect of oil price movements on stock market performance (equity prices). In particular, your analysis should bring an answer to the following question:

 

How the changes in oil prices affect the performance of stock markets of the GCC countries?

Assignment description:

Between July 2014 and January 2015, oil prices lost over 40% of their values. In one day ( November 28th , 2014) the decrease in oil prices recorded to be around 10%, which led researchers to compare this day with Black Monday stock market crash of October 19th, 1987. Analysts relate this drop in prices to the slowdown of major economies in the world and the expected inconsistency between the demand and the supply of oil.

However, one important issue in this discussion is whether cheap oil prices makes stock investment more (or less) attractive for investors? and why stock prices may change with oil price changes.

The above only sample of issues you may discuss, but your analysis should not be limited to bring answers to these questions.

In this assignment, You are required to write a report that will not exceed 1000 words, on the effect of oil price changes on the GCC stock market prices.

You must follow Qatar University’s formatting guidelines and include references. The report will be graded on the detailed criteria outlined at the end of this document. The recommended layout of your report is suggested to be as follows:

  • Cover page (your names, student ID, date & number of words)
  • Executive summary (A high level summary of the project)
  • Table of contents
  • Introduction (analysis of oil prices historical changes)
  • How GCC stock markets behave as a response of the movements in oil prices.
  • Analysis of the effect of oil price changes on stock prices of Qatar Exchange relative to the region and the world.
  • Recommendations
  • Conclusion
  • References

Important notes:

  • Your project should be no more than 1000 words (executive summary and any references and appendices do not count towards the word limit).

 

Reading list:

http://www.forbes.com/sites/katinastefanova/2014/12/31/do-falling-oil-prices-foreshadow-a-slump-in-the-stock-market-in-2015/

http://www.thefiscaltimes.com/Columns/2014/12/03/Will-Cheaper-Oil-Burn-Tesla

http://www.economist.com/blogs/buttonwood/2014/11/oil-and-markets

http://www.sciencedirect.com/science/article/pii/S1044028311000068

 

 

 

 

 

 

 

 

 

 

Grading Criteria:

Performance Area 1: Fails to Meet Expectations 2: Needs Improvement 3: Meet Expectations 4: Above Expectations Score
Logic & Organization Does not develop ideas cogently, uneven and ineffective overall organization, unclear introduction or conclusion Develops and organizes ideas in paragraphs that are not necessarily connected. Some ideas seem illogical and/or unrelated, unfocused introduction or conclusions Develops unified and coherent ideas within paragraphs with generally adequate transitions; clear overall organization relating most ideas together, good introduction and conclusion. Develops ideas cogently, organizes them logically with paragraphs and connects them with effective transitions. Clear and specific introduction and conclusion.  

 

 

 

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Language Employs words that are unclear, sentence structures inadequate for clarity, errors are seriously distracting Word forms and sentence structures are adequate to convey basic meaning. Errors cause noticeable distraction Word forms are correct, sentence structure is effective. Presence of a few errors is not distracting. Employs words with fluency, develops concise standard English sentences, balances a variety of sentence structures effectively.  

 

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Spelling and Grammar Writing contains numerous errors in spelling and grammar which interfere with comprehension Frequent errors in spelling and grammar distract the reader While there may be minor errors, the writing follows normal conventions of spelling and grammar throughout and has been carefully proofread The writing is essential error-free in terms of spelling and grammar  

 

 

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Development of Ideas Most ideas unsupported, confusion between personal and external evidence, reasoning flawed Presents ideas in general terms, support for ideas is inconsistent, some distinctions need clarification, reasoning unclear Supports most ideas with effective examples, references, and details, makes key distinctions Explores ideas vigorously, supports points fully using a balance of subjective and objective evidence, reasons effectively making useful distinctions  

 

 

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