Coronavirus Disease (COVID-19) and Malaysia Stock Market Performance

Purpose: This study aims to investigate the Malaysian stock market performance during and post-coronavirus disease (COVID-19). Design/methodology/approach: The time frame of study is divided into two. During COVID-19, from 3rd December 2019 to 16th June 2021, and post-COVID-19, from 17th June 2021 to 30th December 2022. The daily data of the FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBMKLCI) and 12 Sectorial Index in Bursa Malaysia that are Construction, Consumer Products and Services (CP&S), Energy, Financial Services, Health Care, Industrial Products and Services (IP&S), Plantation, Real Estate Investment Trust (REIT), Technology, Telecommunication and Media, Transportation and Logistics, and Utilities analyzed by employing descriptive analysis and paired sample t-tests. Findings: The study discovered that in the short term, the pandemic negatively impacted the stock market and gradually improved from 2021 to 2022. The recovery from COVID-19 severely impacted most sectors, including Construction, CP&S, Energy, REIT, Health Care, Telecommunication and Media, and Utilities during and post-COVID-19. The sectors that recover quickly are Financial Services, IP&S, Plantation, Technology, and Transportation. Research limitations/implications: Future researchers shall include the Property sector to improve the findings. This can offer a more comprehensive understanding of sectoral influences and enable a nuanced analysis of results. Practical implications: This study provides valuable insights into the Malaysian stock market's performance during and after the COVID-19 pandemic, which can be useful for investors, policymakers, and researchers. Originality/value: This study complements the eventual knowledge about the performance of the stock market during and after the COVID-19 pandemic, exclusively for Malaysia. Keywords: Stock market performance, during COVID-19, post-COVID-19, FBMKLCI, Sectorial Index
Introduction The rapid spread of a new virus known as coronavirus (COVID-19), which the World Health Organization (WHO) classified to be a pandemic, stunned the world in late 2019. (AlTakarli, [...]