Daily new COVID-19 cases, the movement control order, and Malaysian stock market returns
The Movement Control Order (MCO) not only restricts movement of human being, it also reduces firms’ financial profits and brings significant impact to stock returns. The objective of this study is to examine the relation between Malaysian stock market returns and variables related to the novel Coron...
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| Format: | Article |
| Language: | English English |
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2020
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| Online Access: | https://eprints.ums.edu.my/id/eprint/26354/1/Daily%20new%20COVID-19%20cases%2C%20the%20movement%20control%20order%2C%20and%20Malaysian%20stock%20market%20returns.pdf https://eprints.ums.edu.my/id/eprint/26354/2/Daily%20new%20COVID-19%20cases%2C%20the%20movement%20control%20order%2C%20and%20Malaysian%20stock%20market%20returns1.pdf |
| _version_ | 1796910498836381696 |
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| author | Chia, Ricky Chee Jiun Venus Khim-Sen Liew Racquel Rowland |
| author_facet | Chia, Ricky Chee Jiun Venus Khim-Sen Liew Racquel Rowland |
| author_sort | Chia, Ricky Chee Jiun |
| collection | UMS |
| description | The Movement Control Order (MCO) not only restricts movement of human being, it also reduces firms’ financial profits and brings significant impact to stock returns. The objective of this study is to examine the relation between Malaysian stock market returns and variables related to the novel Coronavirus (COVID-19) pandemic outbreak. The FTSE Bursa Malaysia KLCI Index and eight selected main indices from 2 January 2020 to April 30, 2020, which includes the first three MCOs, are considered in this study. The results show that daily new confirmed COVID-19 cases and deaths had negative but insignificant impact on the returns on indices. Interestingly, MCO had significant and positive impact on all the indices’ returns while oversea financial risks had negative impact on these returns. Furthermore, it is found that the degree of impacts of MCO and oversea financial risks varied positively with the firm size of the indices’ constituent companies. China’s decision on unchanged loan prime rate on the 20 February 2020 was a favorable news to the Malaysia stock markets as indicated by the positive returns on all the indices. Similarly, the degree of impact of the China interest policy also varied positively with the firms’ characteristics. These findings are useful for investors in the Bursa Malaysia to manage their investment portfolios based on their appetites for risk. |
| first_indexed | 2024-03-06T03:05:22Z |
| format | Article |
| id | ums.eprints-26354 |
| institution | Universiti Malaysia Sabah |
| language | English English |
| last_indexed | 2024-03-06T03:05:22Z |
| publishDate | 2020 |
| record_format | dspace |
| spelling | ums.eprints-263542021-02-28T14:14:17Z https://eprints.ums.edu.my/id/eprint/26354/ Daily new COVID-19 cases, the movement control order, and Malaysian stock market returns Chia, Ricky Chee Jiun Venus Khim-Sen Liew Racquel Rowland HB Economic theory. Demography HN Social history and conditions. Social problems. Social reform The Movement Control Order (MCO) not only restricts movement of human being, it also reduces firms’ financial profits and brings significant impact to stock returns. The objective of this study is to examine the relation between Malaysian stock market returns and variables related to the novel Coronavirus (COVID-19) pandemic outbreak. The FTSE Bursa Malaysia KLCI Index and eight selected main indices from 2 January 2020 to April 30, 2020, which includes the first three MCOs, are considered in this study. The results show that daily new confirmed COVID-19 cases and deaths had negative but insignificant impact on the returns on indices. Interestingly, MCO had significant and positive impact on all the indices’ returns while oversea financial risks had negative impact on these returns. Furthermore, it is found that the degree of impacts of MCO and oversea financial risks varied positively with the firm size of the indices’ constituent companies. China’s decision on unchanged loan prime rate on the 20 February 2020 was a favorable news to the Malaysia stock markets as indicated by the positive returns on all the indices. Similarly, the degree of impact of the China interest policy also varied positively with the firms’ characteristics. These findings are useful for investors in the Bursa Malaysia to manage their investment portfolios based on their appetites for risk. 2020 Article PeerReviewed text en https://eprints.ums.edu.my/id/eprint/26354/1/Daily%20new%20COVID-19%20cases%2C%20the%20movement%20control%20order%2C%20and%20Malaysian%20stock%20market%20returns.pdf text en https://eprints.ums.edu.my/id/eprint/26354/2/Daily%20new%20COVID-19%20cases%2C%20the%20movement%20control%20order%2C%20and%20Malaysian%20stock%20market%20returns1.pdf Chia, Ricky Chee Jiun and Venus Khim-Sen Liew and Racquel Rowland (2020) Daily new COVID-19 cases, the movement control order, and Malaysian stock market returns. International Journal of Business and Society, 12 (2). pp. 553-568. |
| spellingShingle | HB Economic theory. Demography HN Social history and conditions. Social problems. Social reform Chia, Ricky Chee Jiun Venus Khim-Sen Liew Racquel Rowland Daily new COVID-19 cases, the movement control order, and Malaysian stock market returns |
| title | Daily new COVID-19 cases, the movement control order, and Malaysian stock market returns |
| title_full | Daily new COVID-19 cases, the movement control order, and Malaysian stock market returns |
| title_fullStr | Daily new COVID-19 cases, the movement control order, and Malaysian stock market returns |
| title_full_unstemmed | Daily new COVID-19 cases, the movement control order, and Malaysian stock market returns |
| title_short | Daily new COVID-19 cases, the movement control order, and Malaysian stock market returns |
| title_sort | daily new covid 19 cases the movement control order and malaysian stock market returns |
| topic | HB Economic theory. Demography HN Social history and conditions. Social problems. Social reform |
| url | https://eprints.ums.edu.my/id/eprint/26354/1/Daily%20new%20COVID-19%20cases%2C%20the%20movement%20control%20order%2C%20and%20Malaysian%20stock%20market%20returns.pdf https://eprints.ums.edu.my/id/eprint/26354/2/Daily%20new%20COVID-19%20cases%2C%20the%20movement%20control%20order%2C%20and%20Malaysian%20stock%20market%20returns1.pdf |
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