The impact of COVID-19 on Karachi stock exchange: Quantile-on-quantile approach using secondary and predicted data

Rida Waheed; Suleman Sarwar; Sahar Sarwar; Muhammad Kaleem Khan

doi:10.1002/pa.2290

The impact of COVID-19 on Karachi stock exchange: Quantile-on-quantile approach using secondary and predicted data

J Public Aff. 2020 Nov;20(4):e2290. doi: 10.1002/pa.2290. Epub 2020 Aug 6.

Authors

Rida Waheed¹, Suleman Sarwar¹, Sahar Sarwar², Muhammad Kaleem Khan³

Affiliations

¹ Finance and Economics Department College of Business, University of Jeddah Jeddah Saudi Arabia.
² Department of Economics Government College University Faisalabad Faisalabad Pakistan.
³ School of Management Xian Jiaotong University Xian China.

PMID: 32837327
PMCID: PMC7435569
DOI: 10.1002/pa.2290

Abstract

During the pandemic, the stock markets of developed countries have reported a jittery trend. The current study focuses on the impact of COVID-19 on Pakistani stock market, which belongs to a developing economy. The findings of current study have contradicted with the previous studies, which reported an adverse effect of COVID-19 on developed stock markets. We conclude that KSE-100 index has confirmed positive increment in stock returns. In addition, by using three predicted scenarios of COVID-19, we report the significant increase in KSE-100 index. However, it seems clear that the timely intervention of Pakistani government has safeguard the investors from utter disaster of stock market.