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http://dx.doi.org/10.13106/jafeb.2021.vol8.no11.0011

Impact of COVID-19 Pandemic on the Stock Prices Across Industries: Evidence from the UAE  

ELLILI, Nejla Ould Daoud (Department of Finance and Accounting, College of Business, Abu Dhabi University)
Publication Information
The Journal of Asian Finance, Economics and Business / v.8, no.11, 2021 , pp. 11-19 More about this Journal
Abstract
The aim of this paper is to evaluate the impact of the COVID-19 pandemic on the stock prices of the companies traded on the UAE financial markets (Abu Dhabi Securities Exchange and Dubai Financial Market). The time series regressions have been applied to estimate the impact of COVID-19 data on the companies' stock prices movements. The data cover the period between January 29th, 2020, and January 5th, 2021. The data was collected from the website of the Federal Competitiveness and Statistics Centre of the UAE. The empirical results of this study show that the stock prices are negatively and significantly affected by the number of COVID-19 positive cases and the number of death while they are positively and significantly affected by the number of recoveries. The results vary from one industry to another. These results would be important to the policymakers and financial regulators in developing the needed policies to improve the stock markets' resilience and maintain financial and economic stability. In addition, the findings would be useful to the investors and portfolio managers in taking the most appropriate investment decisions and managing more efficiently their portfolios. This paper will shed light on the responsiveness of the UAE financial market to the COVID-19 pandemic.
Keywords
COVID-19 Pandemic; Stock Prices; Financial Markets; Time Series; UAE;
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