The Effect Of COVID-19 Spread On Egyptian Stock Market Sectors

Abstract

This paper attempts to investigate the effects of COVID-19 spread on Indices Sectoral of The Egyptian Exchange. Coronavirus spread has been measured by “Coronavirus cases” and “Coronavirus deaths” on daily basis. Besides, it’s measured by each of “new Coronavirus cases” and “new Coronavirus deaths”, in terms of Egypt's population. The dependent variable reflects the response of the Egyptian sectoral indicators to the spread of the Corona virus and is measured by the returns of the daily sectoral indicators for the Egyptian stock market.this has been applied on daily basis over the period from March 1, 2020 till May 10, 2020. Results indicate that the return of the stock market sectors seems to be more sensitive to cumulative indicators of mortality than daily deaths from corona virus, and new cases more than cumulative cases of corona virus. The coefficient of determination between the independent variables and the variable belonging to 4 sectors is (IT, Media & Communication Services 0.393, Industrial Goods, Services and Automobiles 0.470, Health Care & Pharmaceuticals 0.327, Basic Resources 0.266).