How Have COVID-19 Confirmed Cases and Deaths Affected Stock Markets? Evidence from Nigeria

Contemporary Economics (2021), Vol. 15 No. 1, pp. 76-99

24 Pages Posted: 26 May 2021

See all articles by Nurudeen Abu

Nurudeen Abu

Umaru Yar’adua University

Awadh Ahmed Mohammed Gamal

Universiti Pendidikan Sultan Idris

Musa Abdullahi Sakanko

Ibrahim Badamasi Babangida University (IBBU) - Department of Economics

Ana Mateen

AKI's Poona College of Arts, Science and Commerce

Joseph David

Ibrahim Badamasi Babangida University (IBBU) - Department of Economics

Ben-Obi Onyewuchi Amaechi

Central Bank of Nigeria

Date Written: February 3, 2021

Abstract

This study assesses the effect of COVID-19 proxied by the number of confirmed cases of the infection and deaths on Nigeria’s stock market over the 23rd March to 11th September 2020 period using the autoregressive distributed lag (ARDL), canonical cointegrating regression (CCR), dynamic ordinary least squares (DOLS) and fully modified ordinary least squares (FMOLS) techniques. The bounds test to cointegration result reveals that a long-run relationship exists between COVID-19 and Nigeria’s stock market (along with oil prices and exchange rate). The results of the various estimations demonstrate that COVID-19 (proxied by the number of confirmed cases of infection) has a negative and significant impact on stock market performance, while the number deaths has a positive and significant impact on the market in the long-run. In addition, oil prices and exchange rate have a significant and positive effect on stock market performance in the long-run. Similar results were found for sub-sectors including consumer goods and healthcare sub-sectors of the stock market. The study recommends policies to curb the spread of the virus.

Keywords: COVID-19, confirmed cases, deaths, stock market, Nigeria

JEL Classification: D53, E44, G14, I15

Suggested Citation

Abu, Nurudeen and Gamal, Awadh Ahmed Mohammed and Sakanko, Musa Abdullahi and Mateen, Ana and David, Joseph and Amaechi, Ben-Obi Onyewuchi, How Have COVID-19 Confirmed Cases and Deaths Affected Stock Markets? Evidence from Nigeria (February 3, 2021). Contemporary Economics (2021), Vol. 15 No. 1, pp. 76-99, Available at SSRN: https://ssrn.com/abstract=3849945

Nurudeen Abu (Contact Author)

Umaru Yar’adua University ( email )

Dutsinma Road, P.M.B 2218
Katsina, Katsina State
Nigeria

Awadh Ahmed Mohammed Gamal

Universiti Pendidikan Sultan Idris ( email )

TG.MALIM - PERAK
Tanjong Malim, PA Perak 35900
Malaysia

Musa Abdullahi Sakanko

Ibrahim Badamasi Babangida University (IBBU) - Department of Economics ( email )

Nigeria

Ana Mateen

AKI's Poona College of Arts, Science and Commerce ( email )

411001, Camp, Pune, Maharashtra 411001, India
Pune
India

Joseph David

Ibrahim Badamasi Babangida University (IBBU) - Department of Economics ( email )

Nigeria

Ben-Obi Onyewuchi Amaechi

Central Bank of Nigeria ( email )

Plot 33, Abubakar Tafawa Balewa Way
Central Business District, Cadastral Zone
Abuja
Nigeria

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