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Exploring the market resilience of selected stocks in the Johannesburg Stock Exchange

Author

Listed:
  • Samuel Tabot Enow

    (Research Associate, The IIE VEGA School)

Abstract

The market resilience of a stock is an integral component of financial market because it supports smooth trading and absorb market shocks. However, the contention has always been to effectively determine the level of resilience in stocks with the application of proper methodology to make informed decisions. Therefore, aim of this study was to examine the level of market resilience in selected stocks in the Johannesburg stock exchange. Using a fixed effect model, the findings of this study indicates that most securities trading on the exchange lack market resilience. This was evident in the significant relationship between the specific independent and dependent variables. A risk coefficient should therefore be assigned to bid and ask to spread to enhance market resilience. These risk coefficients will induce the bid and ask prices to be close to the fundamental price. Key Words:Market resilience, Fixed effect, Trading, Spread

Suggested Citation

  • Samuel Tabot Enow, 2024. "Exploring the market resilience of selected stocks in the Johannesburg Stock Exchange," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 13(6), pages 176-181, September.
    • Handle: RePEc:rbs:ijbrss:v:13:y:2024:i:6:p:176-181
    DOI: 10.20525/ijrbs.v13i6.3471
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    References listed on IDEAS

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