• Title/Summary/Keyword: Malaysian stock market

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The Reaction of the Malaysian Stock Market to the COVID-19 Pandemic

  • Mehmood, Waqas;Mohd-Rashid, Rasidah;Aman-Ullah, Attia;Shafique, Owais;Tajuddin, Ahmad Hakimi
    • Journal of Contemporary Eastern Asia
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    • v.20 no.2
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    • pp.63-84
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    • 2021
  • The present study was conducted to understand the turmoil effects of COVID-19 pandemic on the Malaysian stock market during the different periods of the Movement Control Order (MCO). The present study was based on the secondary data extracted from the DataStream and Bloomberg from 2nd January 2020 to 29th May 2020 to evaluate the effects of COVID-19 pandemic on the Malaysian stock market. The findings suggested that during the different periods of the Movement Control Order (MCO) from the 1st January to 29th May 2020, the COVID-19 pandemic adversely affected the performance of KLCI index and all sectoral indices. The weakest performance indices were energy, property, and finance while the least affected indices were healthcare, technology, telecommunications, and media. This paper provides a review of the impacts of COVID-19 pandemic on the Malaysian stock market throughout the different periods of MCO.

The Impact of COVID-19 on the Malaysian Stock Market: Evidence from an Autoregressive Distributed Lag Bound Testing Approach

  • GAMAL, Awadh Ahmed Mohammed;AL-QADASI, Adel Ali;NOOR, Mohd Asri Mohd;RAMBELI, Norimah;VISWANATHAN, K. Kuperan
    • The Journal of Asian Finance, Economics and Business
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    • v.8 no.7
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    • pp.1-9
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    • 2021
  • This paper investigates the impact of the domestic and global outbreak of the coronavirus (COVID-19) pandemic on the trading size of the Malaysian stock (MS) market. The theoretical model posits that stock markets are affected by their response to disasters and events that arise in the international or local environments, as well as to several financial factors such as stock volatility and spread bid-ask prices. Using daily time-series data from 27 January to 12 May 2020, this paper utilizes the traditional Augmented Dickey and Fuller (ADF) technique and Zivot and Andrews with structural break' procedures for a stationarity test analysis, while the autoregressive distributed lag (ARDL) method is applied according to the trading size of the MS market model. The analysis considered almost all 789 listed companies investing in the main stock market of Malaysia. The results confirmed our hypotheses that both the daily growth in the active domestic and global cases of coronavirus (COVID-19) has significant negative effects on the daily trading size of the stock market in Malaysia. Although the COVID-19 has a negative effect on the Malaysian stock market, the findings of this study suggest that the COVID-19 pandemic may have an asymmetric effect on the market.