The Role of Gold as a Hedge or Safe Haven in African Stock Markets during the COVID-19 Pandemic
This study seeks to investigate the role of gold as a hedge or safe haven against African stock movements during the COVID-19 pandemic by using a two-state Markov Regime-Switching approach. The findings suggest that gold serves as a weak hedge in Malawi, Morocco, Nigeria, Tunisia, and Zambia, a weak...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Editura ASE
2023-10-01
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| Series: | Management and Economics Review |
| Subjects: | |
| Online Access: | https://www.mer.ase.ro/files/2023-3/8-3-9.pdf |
| _version_ | 1797634060432965632 |
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| author | Damien KUNJAL Delane Deborah NAIDU |
| author_facet | Damien KUNJAL Delane Deborah NAIDU |
| author_sort | Damien KUNJAL |
| collection | DOAJ |
| description | This study seeks to investigate the role of gold as a hedge or safe haven against African stock movements during the COVID-19 pandemic by using a two-state Markov Regime-Switching approach. The findings suggest that gold serves as a weak hedge in Malawi, Morocco, Nigeria, Tunisia, and Zambia, a weak safe haven in Ghana, Kenya, Mauritius, Rwanda, Uganda, and Zimbabwe, and a strong safe haven in Botswana and Tanzania. Furthermore, the findings reveal that gold co-moves with the South African stock market regardless of the market regime. These findings imply that, on average, gold offers limited protection for African equity investors. |
| first_indexed | 2024-03-11T12:02:29Z |
| format | Article |
| id | doaj.art-3fac1b17bea3482ca02b8ea863352ff3 |
| institution | Directory Open Access Journal |
| issn | 2501-885X |
| language | English |
| last_indexed | 2024-03-11T12:02:29Z |
| publishDate | 2023-10-01 |
| publisher | Editura ASE |
| record_format | Article |
| series | Management and Economics Review |
| spelling | doaj.art-3fac1b17bea3482ca02b8ea863352ff32023-11-07T18:46:27ZengEditura ASEManagement and Economics Review2501-885X2023-10-018336838610.24818/mer/2023.10-09The Role of Gold as a Hedge or Safe Haven in African Stock Markets during the COVID-19 PandemicDamien KUNJAL0Delane Deborah NAIDU1Corresponding author: North-West University, South AfricaUniversity of Witwatersrand, South AfricaThis study seeks to investigate the role of gold as a hedge or safe haven against African stock movements during the COVID-19 pandemic by using a two-state Markov Regime-Switching approach. The findings suggest that gold serves as a weak hedge in Malawi, Morocco, Nigeria, Tunisia, and Zambia, a weak safe haven in Ghana, Kenya, Mauritius, Rwanda, Uganda, and Zimbabwe, and a strong safe haven in Botswana and Tanzania. Furthermore, the findings reveal that gold co-moves with the South African stock market regardless of the market regime. These findings imply that, on average, gold offers limited protection for African equity investors.https://www.mer.ase.ro/files/2023-3/8-3-9.pdfcovid-19goldhedgesafe havenstock market |
| spellingShingle | Damien KUNJAL Delane Deborah NAIDU The Role of Gold as a Hedge or Safe Haven in African Stock Markets during the COVID-19 Pandemic Management and Economics Review covid-19 gold hedge safe haven stock market |
| title | The Role of Gold as a Hedge or Safe Haven in African Stock Markets during the COVID-19 Pandemic |
| title_full | The Role of Gold as a Hedge or Safe Haven in African Stock Markets during the COVID-19 Pandemic |
| title_fullStr | The Role of Gold as a Hedge or Safe Haven in African Stock Markets during the COVID-19 Pandemic |
| title_full_unstemmed | The Role of Gold as a Hedge or Safe Haven in African Stock Markets during the COVID-19 Pandemic |
| title_short | The Role of Gold as a Hedge or Safe Haven in African Stock Markets during the COVID-19 Pandemic |
| title_sort | role of gold as a hedge or safe haven in african stock markets during the covid 19 pandemic |
| topic | covid-19 gold hedge safe haven stock market |
| url | https://www.mer.ase.ro/files/2023-3/8-3-9.pdf |
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