Dynamics of Stock Returns Amidst COVID-19 Lockdown: A Descriptive Analysis of Global Stock Markets

Kingsley Onyekachi Onyele¹ , Emmanuel Chijioke Nwadike²

Section:Research Paper, Product Type: Journal-Paper
Vol.6 , Issue.12 , pp.18-26, Dec-2020

Online published on Dec 31, 2020

Copyright © Kingsley Onyekachi Onyele, Emmanuel Chijioke Nwadike . This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
 

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Abstract :
This study investigates the dynamics of global stock returns amidst COVID-19 lockdown. Daily returns of eight global stock exchange markets; namely, New York Stock Exchange, Nasdaq Stock Exchange, Tokyo Stock Exchange, Shanghai Stock Exchange, Euronext, London Stock Exchange, Toronto Stock Exchange and Bombay Stock Exchange were analyzed and compared. The study period was divided into three sub-periods, namely; pre-lockdown (trading days between 1st January, 2020 to 10th March, 2020), during lockdown (trading days between 11th March, 2020 to 31st May, 2020) and post lockdown (trading days between 1st June, 2020 to 30th September, 2020. The descriptive analysis revealed that negative returns was recorded across the selected stock exchange markets before the lockdown was imposed across countries of the world. During the lockdown, the descriptive statistic indicated that the New York Exchange, Shanghai Exchange, Toronto Exchange and Bombay Exchange had more negative returns than the other stock exchange markets. After the lockdown, the sampled stock exchange markets witnessed more positive returns than negative returns as shown by their respective positive mean values. Consequently, the study concludes that the lockdown restrictions meant to contain the spread of coronavirus had caused heavy losses in the global stock exchange markets.

Key-Words / Index Term :
Stock returns, stock exchange market, COVID-19, lockdown, descriptive statistic

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