Stock Markets under the Global Pandemic: Evidence from Tunisia during the Early Stage of the COVID-19 Pandemic

Posted: 13 May 2020 Last revised: 2 Aug 2021

See all articles by Wassim Ben Ayed

Wassim Ben Ayed

University of Jendouba - Faculty of Law, Economics and Management of Jendouba, Tunisia

Fatma Medini

University of Jendouba - Faculty of Law, Economics and Management of Jendouba, Tunisia

Rim Ammar Lamouchi

King Abdulaziz University Faculty of Economics and Administration; Ministry of Education Tunisia; GEF-2A LAb, Institut Supérieur de Gestion de Tunis, University of Tunis

Date Written: November 12, 2020

Abstract

The purpose of this study is to investigate the impact of COVID-19 on the performance of stock returns for all companies listed on the Tunis Stock Exchange. More specifically, we analyse the impact of various factors on stock market outcomes. These factors are (1) the daily growth in confirmed cases (DCG), (2) the daily growth in COVID-19 deaths (DDG), and (3) the daily growth in recovered cases (DReC). Our findings show that DCG had a negative impact on stock returns, while DDG increased the performance of stock returns. Finally, DReC had a positive relationship with returns, but this was not significant. The results also highlight how firm capitalization and the daily returns for Brent Crude had a negative impact on stock returns, while the FX rate had a positive impact. On conducting a sectorial analysis, we also found that the consumer cyclical sector has suffered hardships from COVID-19, while stocks returns from the service sector showed the best performance.

Keywords: COVID-19 and finance; Tunisian stock market index; oil prices; financial-market risk

JEL Classification: G01, G10, G14, C23

Suggested Citation

Ben Ayed, Wassim and Medini, Fatma and LAMOUCHI, RIM AMMAR, Stock Markets under the Global Pandemic: Evidence from Tunisia during the Early Stage of the COVID-19 Pandemic (November 12, 2020). Available at SSRN: https://ssrn.com/abstract=3598726 or http://dx.doi.org/10.2139/ssrn.3598726

Wassim Ben Ayed (Contact Author)

University of Jendouba - Faculty of Law, Economics and Management of Jendouba, Tunisia ( email )

Jendouba,
Jendouba, TN 2000
Tunisia

HOME PAGE: http://https://www.mendeley.com/profiles/wassim-ben-ayed2/

Fatma Medini

University of Jendouba - Faculty of Law, Economics and Management of Jendouba, Tunisia ( email )

Avenue de l'U.M.A , 8189 Jendouba,
Jendouba, TN 2000
Tunisia

RIM AMMAR LAMOUCHI

King Abdulaziz University Faculty of Economics and Administration ( email )

JEDDAH
JEDDAH, 21589
Saudi Arabia

Ministry of Education Tunisia ( email )

Tunis
tunis, 1100
Tunisia

GEF-2A LAb, Institut Supérieur de Gestion de Tunis, University of Tunis ( email )

41 Rue de la Liberte, Cite Bouchoucha
Bardo, Tunis 2000
Tunisia

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