An Empirical Investigation of Herd Behaviour in Surplus Economy: Evidences from Muscat Stock Market

This study investigates herd behaviour in the surplus economy of Sultanate Oman under Bear and Bull market conditions. The first aim is to determine if investors at Muscat Stock Market (MSM) exhibit behavior or not. second compare different stochastic time-series models commonly used test forecast behavior. Finally, aims whether MSM predominantly risk-driven as measured by Cross-Sectional Standard Deviation (CSSD) return-driven Absolute (CSAD) stock returns from overall return. Our analyses are based on daily Market’s index for period starting 1st January 2010 ending 31st December 2019, pre Covide-19 pandemic. findings disclose: (1) that exhibits behavior, (2) there statistically significant among MSM, where ARIMA (1,0,0) model highest predictive power (3), MSM’s driven more CSSD than CSAD bearish bullish