This research wants to investigate the effect of COVID-19 towards stock market performance. COVID-19 is new disease that caused by strain of coronavirus, a type of virus known to cause respiratory infections in human’s body. This virus started it outbreak in December 2019 does not only affect the healthcare of people but also the economics of the emerging country such as Malaysia. Thus, the COVID-19 pandemic also shows its impact on the global stock market return. This occurrence is created when the number of COVID-19 cases in Malaysia increased which led to the government of Malaysia announced a movement control order (MCO). The outbreak forced the shutdown the operation of business and daily activities, then affected the stock market. The consequences of infectious are considerable and have been directly affecting stock markets return worldwide. The main aim of this study is to focus more on the performance of healthcare index by using the healthcare index return as the dependent variable. While the independent variables used in this study are COVID-19 cases, COVID-19 death cases, financial market volatility VIX index and money supply. The method use in this study are multiple linear regression. This study using the secondary data and daily data with the sample period covered from 24 January 2020 to 23 November 2020. The findings shows that all independent variable have the significant relationship with the healthcare index return. For further studies, researchers can extend the research by making a performance comparison between pre and post pandemic effect towards healthcare index return.
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In-Text Citation: (Mustafa et al., 2022)
To Cite this Article: Mustafa, N. N. S., Razali, N. H. M., & Samsudin, S. (2022). Effect of Covid-19 Towards Stock Market Return: Evidence of Malaysia Healthcare Index. International Journal of Academic Research in Business and Social Sciences, 12(9), 14 – 23.
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