CORONAVIRUS DISEASE (COVID-19) PANDEMIC AND THE NIGERIAN STOCK MARKET PERFORMANCE

Abstract

The emergence of the highly contagious coronavirus disease (COVID-19) pandemic and the
responses to it would have affected the Nigerian stock market. The study investigated the effect of
the pandemic on the Nigeria stock market performance generally and on the various sectors of
enterprises on the exchange. Event study methodology with an application of t-test of means
difference between daily stocks indices covering 50 trading days to the emergence of the
pandemic and 50 trading days in the pandemic were employed for the investigation. Findings
indicate that COVID-19 had significant negative effect on the stock market generally and across
all the different sectors of the exchange. The findings could be attributed to the restrictions and
social-distancing imposed responses to COVID-19, uncertainty and fear it created, coupled with
the structure of the economy with low level application of hi-technology. The study recommends
that government should provide stimulus packages that will put companies back on track to their
pre-COVID-19 performance, intensify efforts in the provision of health care facilities and
research endeavours that will respond speedily to pandemic outbreak, and improve on
information management to reduce fear and uncertainty associated with COVID-19.