Coronavirus Pandemic Impact on Arabian Securities Markets Performance
DOI:
https://doi.org/10.35516/jjes.v11i1.1566Keywords:
Coronavirus pandemic, COVID-19, Arabian Securities Markets, Event StudyAbstract
Objectives: The study aims to assess the impact of the World Health Organization's declaration of COVID-19 as a global pandemic on the performance of Arab financial markets and to determine whether there is a difference in this impact among these markets. The study sample includes nine financial markets: the Saudi Stock Exchange, the Egyptian Stock Exchange, the Muscat Securities Market, the Abu Dhabi Securities Exchange, the Bahrain Bourse, the Qatar Stock Exchange, the Kuwait Stock Exchange, the Tunis Stock Exchange, and the Casablanca Stock Exchange.
Methods: To achieve the study's objectives, an event study methodology was employed, covering t-400 trading days before the announcement and t400 after it. T-tests and the equal-means test were also used. Daily closing price data for the indices of these markets were collected from their official websites and the Mubasher website.
Results: The study found a negative impact of the announcement on the performance of Arab financial markets, represented by the cumulative abnormal negative returns of these markets' indices. The study also identified differences in the impact of this pandemic among the markets.
Conclusions: The study emphasizes the importance of enhancing cooperation among Arab financial market authorities to serve the interests of these markets. It also underscores the necessity of further studies on this topic, especially since the crisis is over.
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Websites:
https://www.adx.ae/arabic/Pages/default.aspx
https://www.bahrainbourse.com/ar/
https://www.boursakuwait.com.kw/ar/
https://www.egx.com.eg/ar/homepage.aspx
https://www. msm.gov.om/
https://www.saudiexchange.sa/wps/portal/tadawul/
