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Analysis of the relationship between COVID-19 and the stock market performance in South Africa

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  • Sboniso Mokoena
  • Bomi Nomlala

Abstract

The paper’s objective was to investigate the relationship between COVID-19 and South Africa financial stock markets. The pandemic worsened South Africa's unstable financial condition and societal problems: business was severely disrupted, as were the travel industry, hospitality, food security, small businesses, and many other sectors. The results show that the COVID-19 pandemic triggered high and longer-lasting financial volatility in the markets. The higher level of volatility persistence suggests a prolonged period of increased uncertainty. Overall, the uncertainty about the vaccine's effectiveness towards the pandemic provides low expectations about the future of the stock market, since there are variants that are still being discovered.

Suggested Citation

  • Sboniso Mokoena & Bomi Nomlala, 2022. "Analysis of the relationship between COVID-19 and the stock market performance in South Africa," International Journal of Finance & Banking Studies, Center for the Strategic Studies in Business and Finance, vol. 11(2), pages 25-33, April.
    • Handle: RePEc:rbs:ijfbss:v:11:y:2022:i:2:id:1477
    DOI: 10.20525/ijfbs.v11i2.1477
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    References listed on IDEAS

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