Stock market flexibility during COVID-19 pandemic: evidence from Pakistan

Ume Kalsoom, Sheheryar Javed, Rizwan Ullah Khan and Arif Maqsood

Journal of Economic and Administrative Sciences, 2021, vol. 39, issue 4, 976-987

Abstract: Purpose - The authors examine the impact of coronavirus disease 2019 (COVID-19) pandemic on the stock market, forex market and gold market of Pakistan. Design/methodology/approach - By using the daily data of COVID-19 confirmed cases, stock index, foreign currency rates and gold prices for the period 10 March 2020 to 16 October 2020, the authors explore that the stock index negatively responds to the corona pandemic. Findings - Additionally, the authors observe the price hikes in gold and foreign currency corresponding to the number of COVID-19 positive cases. Practical implications - The study analysis unveils that the stock market adversely responds to a pandemic, whereas, forex and gold markets serve as a safe haven for investors at the time of financial distress. Originality/value - This study complements the literature and provides empirical evidence of the stock market, the gold market and foreign currency market, in the perspective of Pakistan.

Keywords: COVID-19; Stock market; Foreign currency market; Gold market; Pakistan (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:eme:jeaspp:jeas-07-2021-0131

DOI: 10.1108/JEAS-07-2021-0131

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