Stock Prices and Oil Prices Response to Covid-19 in Pakistan

Abstract

The COVID-19 challenge is unquestionably the first big sustainability test in the twenty-first century. This article analyses the effects of COVID-19 on Pakistani markets and commodities while the closure is in effect. The effect of the COVID-19 spread on the Pakistani stock and commodity markets was also compared between the first and second waves. The essay also discusses the lockout and the COVID-19 spread and stock market performance and sustainability, in particular South Asian nations. GMM multivariate analysis is used to examine the link between stock market returns, gold prices, and oil prices. According to research, oil prices and stock market performance suffer significantly during lockdown periods in Pakistan. The impact on gold prices, on the other hand, is significant and positive. This is also confirmed by the initial wave of COVID-19 infection data. When a disease spreads in waves, there is more uncertainty. COVID-19 may have an impact on the stock market performance in various South Asian nations, according to additional research findings. The stock market performance in all South Asian nations studied was not significantly impacted by COVID-19. Now that these data reveal that COVID-19 influences the stock and commodities markets, researchers may use them to understand better how a pandemic would affect them. Stock and commodities market movements can be predicted using this information if a pandemic occurs