Ume Kalsoom, Sheheryar Javed, Rizwan Ullah Khan and Arif Maqsood
The authors examine the impact of coronavirus disease 2019 (COVID-19) pandemic on the stock market, forex market and gold market of Pakistan.
Abstract
Purpose
The authors examine the impact of coronavirus disease 2019 (COVID-19) pandemic on the stock market, forex market and gold market of Pakistan.
Design/methodology/approach
By using the daily data of COVID-19 confirmed cases, stock index, foreign currency rates and gold prices for the period 10 March 2020 to 16 October 2020, the authors explore that the stock index negatively responds to the corona pandemic.
Findings
Additionally, the authors observe the price hikes in gold and foreign currency corresponding to the number of COVID-19 positive cases.
Practical implications
The study analysis unveils that the stock market adversely responds to a pandemic, whereas, forex and gold markets serve as a safe haven for investors at the time of financial distress.
Originality/value
This study complements the literature and provides empirical evidence of the stock market, the gold market and foreign currency market, in the perspective of Pakistan.