Stock Market Performance and Foreign Direct Investment (FDI) during Covid-19 in Emerging Markets
DOI:
https://doi.org/10.52461/sabas.v5i1.2638Keywords:
Pakistan Stock Exchange, Covid-19 Pandemic, Foreign Direct Investment, Stock Market Performance, KSE -100Abstract
This study analyses the performance of the Pakistan Stock Exchange (PSX) during the Covid-19 with Foreign Direct Investment (FDI). The stock markets are considered as the indicators of the economy. The Covid-19 pandemic outbreak from China in December 2019 and became a global virus within no time. The Covid has affected the economies negatively, although the level remained different in different economies. The financial sectors of the developed markets also got affected by the Covid pandemic as it has affected the global economies. In this study, Foreign Direct Investment is taken as the control variable to analyze the performance of PSX during covid-19. The Covid-19 positive cases are taken as a proxy for the Covid-19 data set. The sample data on weekly basis for stock prices in the Year 2020. The results indicate the Covid-19 has negatively affected the PSX, while FDI has a positive impact on the PSX performance.
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