COVID-19 Pandemic and the Performance of Listed Securities: Evidence from the Nairobi Securities Exchange in Kenya

Abstract

The Novel Covid-19 disease led to panic that resulted to volatility of stock prices across the securities exchange in the world. This saw foreign investors liquidating their positions for fear of a market crash in Nairobi Securities exchange (NSE). The specific objective of this research was to find out whether Covid-19 pandemic had an effect on the performance of listed securities at the NSE in Kenya. Daily data for 5 months, 154 days since the period 13th March 2020 to 14 August 2020 was utilized. The study applied linear regression analysis model to find out the effect of Covid-19 daily cases on the performance of listed securities at the NSE in Kenya. The study findings revealed that Covid-19 daily cases and weather changes had a negative and statistically significant effect on the performance of listed securities at the NSE. The results inferred that Covid-19 daily cases affected the performance of listed stocks at the NSE since the announcement of the first Coronavirus cases in Kenya. The findings from this study are useful for policy implications as it provides guidance to policy makers to institute applicable policy reactions in line with the course of current coronavirus pandemic or during future pandemics of similar nature.