The Effect of Covid-19 on Stock Market Performance: Evidence from ASEAN5

Abstract

In this paper, we investigate the stock price performance of the Covid-19 pandemic. Utilizing daily Covid-19, exchange rate, and yield bond of ASEAN5 countries over the period June 16 to July 15, 2020. We employ the Hausman test to find a suitable model in our study, and it suggested the Random Effect Model as the appropriate technique. According to the result obtained total cases has a statistically significant negative influence on the stock price, while yield bond has a negative and statistically significant effect on the stock price. Contrarily, the exchange rate has a positive and significant influence on stock price performance. Therefore, it’s necessary to carry future studies by using other macroeconomic variables to obtain reliable and robust findings that could have a substantial consequence on policymakers.

Keywords: Total Cases, Exchange Rate, Bond Yield, Stock Price, Panel Technique

DOI: 10.7176/JESD/12-16-01

Publication date:August 31^st 2021