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Map of Nigeria Showing 36 States and FCT Affected by COVID-19 as at Midnight 25th September, 2020 Source: NCDC (2020)'s COVID-19 Situation Report.
Contexts in source publication
Context 1
... this date, there was a total of 32,110,656 confirmed cases in the world, with total 980,031 deaths. Figure 1 shows the distribution of the coronavirus across the 36 states and FCT, Nigeria as at 25th September, 2020. In ranking according to prevalence, Lagos state had the highest number of confirmed cases (19174) and followed by FCT (5,644), Plateau State (3,373) and Oyo State (3,248) in that order. ...
Context 2
... trend analysis share prices (ASI) in the Nigeria between first week in March and penultimate week in September is depicted in Figure 1. The line graph shows that at beginning of the public declaration of the coronavirus in Nigeria, stock prices were initially high but began declining drastically from the second week in March 2020 until it reaches its minimum so far in the 30-week period in the 5th week. ...
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The author’s experiences and reflections on the Coronavirus epidemic affecting education.
Citations
... In 2020, these percentages were the worst since 2008, and many economic experts also stated that the COVID 19 crisis represented the most severe blow to the global economy, as the growth contraction reached 2.8% compared to the global financial crisis in 2009, in which the growth contraction reached to 1.7%. Babarinde (2020) indicates that there is a noticeable interest within the financial and banking studies community regarding the stock price, where the researchers explained that stock prices are clearly affected by many economic factors, whether inside or outside the organization and these factors play a major role in determining the market value of the stock and predictions too. As for Ramelli and Wagner (2020), it was emphasized that the factors that affect the stock price also include many of the administrative decisions of the organization such as distributed profits, book value, and equity, while other determinants may be outside the boundaries of the organization such as supply and demand, turnover rate, price interest, and expected risks. ...
... A study by Babarinde (2020) aimed at examining the influence of COVID 19 spread on Nigerian stock prices, the researcher indicates that information is what moves the stock market, and therefore, the validity and transparency of information about COVID 19 and the reported cases greatly affect the stock market and stock prices, from here, the researcher tried to identify the fatal cases of COVID 19, and declared and its impact on stock prices in the Nigerian Stock Exchange.VAR was relied on in analyzing the data that was accessed from the Nigerian Stock Exchange website between 2 March 2020 and 25 September 2020, the results of the study indicated that there is no clear causal relationship between the cases of COVID 19 and the fluctuation of stock prices in the Nigerian Stock Exchange. Deaths resulting from COVID 19 had a positive impact on stock prices, and therefore the researcher concluded the idea that COVID 19 does not constitute an important determinant of the change in stock prices in the Nigerian Stock Exchange during the study period. ...
Proceeding from the severe influence of COVID 19 pandemic on the world, current research is launched as an attempt to shed the light on the determinants of stock prices in Amman Stock Exchange during the COVID 19 pandemic between the periods1stquarters of 2018 until 4thquarter of 2021. The determinants of stock prices were adopted and which were represented in (Earnings per Share EPS, Trading Volume, Money Supply, Inflation, Gross Domestic Product GDP and Stock Price), and the study came to the conclusion that COVID 19 pandemic had a significant impact on Amman Stock Exchange stock prices during the period of closures that accompanied the pandemic and the strict precautionary measures adopted by the Jordanian government as an attempt to stop the spread of the virus and contain it,in addition to reducing the number of deaths caused by it. Through analysis, study also found that earnings per share and money supply were the main two factors that were influenced by COVID 19 and shed its negative influence on stock prices leading to an increase and inflation. The study recommendsthe need to review the performance of Amman Stock Exchange during the pre-pandemic time in order to ensure the analysis of market performance and to indicate areas of speculation for investors, in addition to supporting central banks to adopt a plan to expand the provision of liquidity through loans and asset purchases.
... Also, do other stock market indicators exhibit similar characteristics? The few studies that have explored the link between the pandemic and stock market performance in Nigeria (see Adenomon et al., 2020;Alade et al., 2020;Babarinde, 2020) have mostly concerned themselves with restrictive indicators of stock market performance. The authors are currently unaware of any study in Nigeria that has sufficiently examined the impact of the Covid-19 pandemic on a broad set of key indicators of stock market performance (notably, stock market return, stock market volatility, stock market capitalization, and stock market efficiency) within a single study. ...
... Additionally, most available studies in the case of Nigeria (Adenomon et al., 2020;Alade et al., 2020;Babarinde, 2020) have been somewhat restrictive in that they consider limited indicators of stock market performance. This study fills that gap in the stock market literature of Nigeria by focusing on broader indicators of stock market performance which include stock market prices, stock market returns, stock market capitalization, stock market efficiency, and stock market volatility all within a single study. ...
We empirically conducted a distinct analysis of the efficiency of the stock market before and during the Covid-19 pandemic in Nigeria as well as the impact of the Covid-19 pandemic on several indicators of stock market performance. Data were collected on stock variables on monthly basis for the pre-Covid-19 era (2018M02 to 2020M01) and Covid-19 pandemic era (2020M02 to 2022M01) from the Central Bank of Nigeria Statistical Bulletin, while data on the numbers of daily new confirmed cases (New cases and deaths) as well as the government response stringency index on COVID-19 pandemic were obtained from Our World in Data (OWID). We leveraged numerous advantages of the Data Envelopment Analysis (DEA) to estimate stock market efficiency before and during the Covid-19 pandemic for the purpose of comparison. Also, we employed the Autoregressive Distributed Lag Mixed Data Sampling (ADL-MIDAS) approach to conduct the impact analysis of the Covid-19 pandemic on stock market performance. We found that, in terms of efficiency, the stock market was more efficient during the Covid-19 pandemic than in the pre-Covid-19 era, being the only active market among other financial markets especially when several restrictions and total lockdown were imposed. In terms of returns and volatility, the study concluded that the Covid-19 pandemic did not significantly influence Nigeria’s stock market performance negatively. However, the government stringency measures had a significant positive impact on the stock market return in Nigeria. Our findings are instructive to policymaking and financial regulation.
... Ngwakwe, (2020) also evaluated the effect of Covid-19 pandemic on global stock market values. In Nigeria, however, most of the few available studies focused on the nexus between COVID-19 and stock prices (Babarinde (2020a); market capitalization (Alade et al. (2020), Babarinde et al. (2020); equity turnover (Babarinde (2020b); market performance (Adenomon et al.,2020). Ikwuagwu et al. (2020) focused on the effect of coronavirus on returns for health firms in Nigeria. ...
... This study is a based on event study methodology in line with similar previous studies (such as Babarinde (2020), Liu et al. (2020)). In line with Alade et al. (2020) and Babarinde (2020a), this study applied Vector Autoregression (VAR) technique to the analysis of the link between oil and gas stock index and COVID-19 cases in Nigeria. ...
The oil and gas sector has found itself amidst the twin
crises of COVID-19 and price war and these are perceived to
impact sector’s quoted stocks. In this paper, Vector Autoregression
(VAR) technique was applied to determine the nexus between
covid-19 (fatal, recovery and positive) cases, and oil and gas stock
index in Nigeria using 43 weeks’ data sets from March 2 to
December 27, 2020. This study found no long-run relationship
between covid-19 and oil and gas stock index in Nigeria. Moreover,
Covid-19 recovery cases (lag 1) have negative and non-significant
effect on oil and gas stock index in Nigeria while its lag 2 coefficient
is positive and statistically significant. In the same vein, covid-19
positive cases (lags 1 and 2), have positive but non-significant
effects on oil and gas stock index in Nigeria. Moreover, covid-19
fatal cases (lag 1) and oil and gas stock index have negative and
non-significant relationship while the lag 2 coefficient is positive
but non-significant. This study posits that there is a positive and
significant relationship between covid-19 recovery cases and oil
and gas stock index in Nigeria. This implies that the rate of
recoveries from covid-19 poses a good sign to the oil and gas
stock performance in Nigeria. The study recommends that
Government should make available to the public, covid-19 vaccine
to stimulate resilience to and recovery from the disease (for those
infected). There is also the need for public confidence building
campaigns, workshops, and other measures to stimulate capital market activities
... Similar results are reported by various scholars, such as Abu et al. [2], Ashraf [10], Al-Awadhi et al. [4], Ru et al. [30], Alber [5], among others, who documented that returns on stock markets appear to be more susceptible to confirmed COVID-19 cases than reported deaths. Our results, however, are contrary to findings in Babarinde [12], who document that all the measures of COVID-19 confirmed cases and deaths do not statistically and significantly explain stock prices in Nigeria. ...
... thereby neglecting the fact that we are in globalised world where economic activities are linked with one another. Most importantly, aggregate data of the stock market returns are used in most of the studies using static estimation methods except the study by Babarinde[12] that used times series VAR to explore the dynamic effect of COVID-19 confirmed cases and deaths on stock market returns. In our study, we consider both the static and dynamic effects of COVID-19 pandemic on the stock market returns of Nigerian firms. ...
Given the effects COVID-19 pandemic on the financial sectors across the world, this study examined the reaction of stock returns of 201 firms listed in the Nigerian Stock Exchange to the COVID-19 pandemic and lockdown policy. We deployed both Pooled OLS and Panel VAR as estimation methods. Generally, the results from POLS show the stock market returns of the Nigerian firms reacted negatively more to the global COVID-19 confirmed cases and deaths than the domestic COVID-19 confirmed cases and deaths and lockdown policy. The results of the impulse response functions revealed that the effects of COVID-19 confirmed cases and deaths and lockdown policy shocks on stock returns oscillate between negative and positive before the stock market returns converge to the equilibrium in the long run. The FEVD results showed that growth in the COVID-19 confirmed cases, deaths and lockdown policy shocks explained little variations in stock market returns. Given our finding, we advocate for the relaxation of policy of lockdown and the combine use of monetary and fiscal policies to mitigate the negative effect of COVID-19 pandemic on stock market returns in Nigeria.
... This study adopts an event study methodology, which in line with similar studies (Babarinde, 2020;Ikwuagwu, et al., 2020;Liu et al., 2020;Zaky et al., 2020) entails the measurement of the impact of a particular event/activity/phenomenon on a subject of interest. Hence, in this study we investigated the effect of covid-19 related positives, discharges and fatalities, on stock market capitalization in Nigeria. ...
Nigeria barely came out of the economic crisis of 2016, that the novel coronavirus disease (COVID-19) greeted the soil of Nigeria in February, 2020 like a thief in the night. As at September 27, 2020, while there were 32,730,945 cases of COVID-19 globally, and Nigeria had total confirmed cases of 58,324. Besides the health risk posed by the pandemic, the Nigeria stock market indices such as the market capitalization has been affected too. In a 30-week event study, beginning from 2nd March 2020 and ending on 27th September, 2020, this paper examined the impact of cumulative and new confirmed, discharged and fatal cases of coronavirus on stock market capitalization in Nigeria using Autoregressive Distributed Lag (ARDL) technique. This study reveals the existence of a long run relationship between COVID-19 measures and stock market capitalization in Nigeria. It is also established from the ARDL analysis that except for discharged cases (cumulative and new) which are positively signed with stock market capitalization, both confirmed (positive) cases and fatalities are negatively signed with stock market capitalization in Nigeria. However, only total (cumulative) fatalities and total confirmed cases are statistically significant in explaining the reduction in stock market capitalization in Nigeria. Thus, this study concludes that the cumulative confirmed and fatal cases of coronavirus have significant negative impacts on stock market capitalization in Nigeria. Therefore, there is a need to curtail further spread of the disease in order to reduce the panic created in the stock market. Government's palliatives targeted at bringing succour to the market in this era of coronavirus, is another step in a good direction.
... Ashraf (2020) show that stock market returns in selected 64 countries declined as the number of confirmed cases increased, however response to the growth in deaths is not that statistically significant. In a recent study, Babarinde (2020) confirms no evidence of causality between coronavirus and stock prices in Nigeria, as none of the measures of coronavirus is statistically significant in explaining stock prices in the period of study. ...
... This study uses an event study method (Babarinde, 2020;Demirguc-Kunt et al., 2020;Ikwuagwu et al., 2020; to examine the effect of coronavirus on banking sector's stock returns in Nigeria. The sector is examined due to the fact the Nigerian financial system is driven and dominated by the sector and its positive role in the economy at large. ...
Since its outbreak in China in December, 2019 and subsequent spread to Nigeria in February 2020, coronavirus disease (COVID-19) has been contagious in effect, not only medically but financially, thereby causing feverish behavior among investors. This is perceived to have potential impact on stock market returns generally and banking sector's stocks returns in particular. Therefore, this research aims to empirically determine the effect of COVID-19 on stock returns, with a focus on the Nigerian banking sector whose stocks are one of the most traded in the Nigerian stock market. This study applies Pearson correlation and Ordinary Least Squares regression technique in the investigation of the reaction of Nigerian banking sector's stock returns to COVID-19 new confirmed (positives), discharges(recoveries) and fatalities (deaths) cases. Secondary data on weekly basis in respect of COVID-19 and banking sector's stock returns were obtained from the websites of the Nigeria Centre for Disease Control and the Nigerian Stock Exchange respectively. The 34-week event study began on March 2, 2020 and ended on October 25, 2020. Empirical findings show a negative and weak correlation between coronavirus and banking sector's stock returns in Nigeria. The regression results indicate that every new confirmed (positive) case of coronavirus in Nigeria has a negative and significant effect on the returns of the banking sector's stock in Nigeria. This study therefore concludes that coronavirus has a significant debilitating effect on the banking sector's stock returns in Nigeria. It is therefore suggested that investors should focus on portfolio rebalancing with is skewed towards other securities other than stocks but more of fixed-income securities (such as bonds, debentures) as well as real-estate investments.
This study analyses whether Coronavirus health shocks and government responses in terms of lockdown policy and stringency measures impact stock markets in Africa. We found that stock markets appeared to be more negatively responsive to growth in total number of COVID‐19 reported cases than the growth in deaths in the case of Nigeria and South Africa. While for Egypt, the stock market reacted significantly negative to both COVID‐19‐related indicators. Our results further show that government stringency policy has significant negative effect on stock market returns in the case of Nigeria and South Africa, but positive in the case of Egypt.
