Covid-19 Aftermath Faced By PSX Stocks: An Efficient Market Hypothesis

Abstract

This Study is done to explore and analyze the impacts of covid-19 lockdown in Pakistan-on-Pakistan stock exchange sectoral performance. The data set used for this study range from 24-March-19 to 25 March-21 for 9 sectors (Automobile, Cement, Pharmaceuticals, Oil and Gas, Food, Technology and Communication, Banking, Fertilizers, and Transport), 5 companies from each sector with highest market share and there trading days stock closing price from 24-March-19 to 25 March-21. For this study event study approach is used and Abnormal returns and Cumulative abnormal returns are calculated. The findings shows that Pakistani sectors are hit in a different manner as compared to developed nations because there pharmaceutical sector remained the best performing sector while in Pakistan its not the same case. The Findings shows that sectors like Automobile, Oil and gas, cement, Pharma, Fertilizer and banking managed to recover witching there next 60 days of trading from the announcement of lock down while sector like transport remained in loss due to long term travel bans internationally.