Assessing Exuberances in Stock Returns of Oil-Exporters

This study assessed explosive behaviour in the stock market of oil-exporting countries using the Supremum ADF and a Generalized supremum ADF tests to detect multiplicative bubbles in daily stock returns for the period April 15, 2013, to May 15, 2024. The paper, thus, provides evidence of explosive dynamics in stock returns of oil-exporting countries, except in the US, while multiplicative bubbles were detected in the Nigerian and Venezuelan markets. The Panel analysis equally shows explosive patterns, implying that highly exuberant markets dominate the oil exporting bloc.