ISSN: 2226-3624
Open access
The COVID-19 pandemic occurs in year 2020 bring huge impact in worldwide. The global stock market was affected by the COVID-19 pandemic including Malaysia’s stock market. The purpose of this study is to determine the impact of the COVID-19 pandemic on Malaysian stock performance. This study will employ the Kendall’s tau-b correlation analysis to determine the impact of the COVID-19 pandemic. The data collected are daily data from 25th January 2025 to 31st December 2025. The dependent variable is the Kuala Lumpur Composite Index (KLCI) while the independent variables are built up from two categories which are the COVID-19 variables and the control variables. The COVID-19 variables include the confirmed cases, death cases and recovery cases. On the other hand, the control variables include the oil price, gold price, exchange rate, volatility index and NASDAQ composite index. The result showed the COVID-19 variables had significant impact on KLCI.
Ahmed, S. Y. (2020). Impact of COVID-19 on Performance of Pakistan Stock Exchange. Munich Personal RePEc Archive, 1-12. Retrieved from https://mpra.ub.uni-muenchen.de/101540/
Alam, M. N., Alam, M. S., & Chavali, K. (2020). Stock Market Response during COVID-19 Lockdown Period in India: An Event Study. Journal of Asian Finance, Economics and Business, 7(7), 131-137. Retrieved from https://www.koreascience.or.kr/article/JAKO202020952022430.pdf
Al-Awadhi, A. M., Alsaifi, K., AhmadAl-Awadhi, & Alhammadi, S. (2020). Death and contagious infectious diseases: Impact of the COVID-19 virus on stock market returns. Journal of behavioral and experimental finance, 27, 100326. Retrieved from https://www.sciencedirect.com/science/article/abs/pii/S2214635020300800?via%3Dihub#!
Anh, D. L., & Gan, C. (2020). The impact of the COVID-19 lockdown on stock market performance: evidence from Vietnam. Journal of Economic Studies, 48(4), 836-851. Retrieved from https://www.emerald.com/insight/content/doi/10.1108/JES-06-2020-0312/full/html#loginreload
Ashraf, B. N. (2020). Stock markets’ reaction to COVID-19: Cases or fatalities? Research in International Business and Finance, 54, 101249. Retrieved from https://www.sciencedirect.com/science/article/abs/pii/S0275531920304141?via%3Dihub
Bernama. (17 March, 2020a). Chronology of COVID-19 in Malaysia. Retrieved from newsarawaktribune: https://www.newsarawaktribune.com.my/chronology-of-covid-19-in-malaysia/
Bunyan, J. (16 March, 2020). PM: Malaysia under movement control order from Wed until March 31, all shops closed except for essential services. Retrieved from malaymail: https://www.malaymail.com/news/malaysia/2020/03/16/pm-malaysia-in-lockdown-from-wed-until-march-31-all-shops-closed-except-for/1847204
Chen, C. D., Chen, C. C., Tang, W. W., & Huang, B. Y. (2009). The Positive and Negative Impacts of the Sars Outbreak: A Case of the Taiwan Industries. The Journal of Developing Areas, 43(1), 281-293. Retrieved from https://www.jstor.org/stable/40376284
Chen, M. H. (2011). The response of hotel performance to international tourism development and crisis events. International Journal of Hospitality Management, 30(1), 200-212. Retrieved from https://www.sciencedirect.com/science/article/pii/S0278431910000782
Chen, M. H., Jang, S. C., & Kim, W. G. (2007). The impact of the SARS outbreak on Taiwanese hotel stock performance: An event-study approach. International Journal of Hospitality Management, 26(1), 200-212. Retrieved from https://www.sciencedirect.com/science/article/pii/S0278431906000041
Chia, R. C.-J., Liew, V. K.-S., & Rowland, R. (2020). Daily New COVID-19 Cases, The Movement Control Order, and Malaysian Stock Market Returns. International Journal of Business and Society, 21(2), 553-568. Retrieved from http://www.ijbs.unimas.my/images/repository/pdf/Vol21-no2-paper4.pdf
Chong, T. T., Lu, S., & Wong, W. K. (8 September, 2010). Portfolio Management during Epidemics: The Case of SARS in China. Retrieved from SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1673671#paper-citations-widget
Gogtay, N. J., & Thatte, U. (2017). Principles of Correlation Analysis. Journal of The Association of Physicians of India, 65(3), 78-81. Retrieved from https://www.kem.edu/wp-content/uploads/2012/06/9-Principles_of_correlation-1.pdf
Hashim, J. H., Adman, M. A., Hashim, Z., Radi, M. F., & Soo, C. K. (2021). COVID-19 Epidemic in Malaysia: Epidemic Progression, Challenges, and Response. Front. Public Health, 9:560592. Retrieved from https://www.frontiersin.org/articles/10.3389/fpubh.2021.560592/full
He, Q., Liu, J., Wang, S., & Yu, J. (2020). The impact of COVID-19 on stock markets. Economic and Political Studies, 8(3), 275-288. Retrieved from https://www.tandfonline.com/doi/pdf/10.1080/20954816.2020.1757570?needAccess=true
Jaapar, A. M., Chukari, N. A., & Tarmizi, S. N. (2021). The Effect of Covid-19 Pandemic on Large-cap Stocks in Malaysia. Malaysian Journal of Science, Health & Technology, 7(2), 8-14. Retrieved from https://mjosht.usim.edu.my/index.php/mjosht/article/view/167
Lee, K. Y.-M., Jais, M., & Chan, C.-W. (2020). Impact of Covid-19: Evidence from Malaysian Stock Market. International Journal of Business and Society, 21(2), 607-628. Retrieved from http://www.ijbs.unimas.my/images/repository/pdf/Vol21-no2-paper7.pdf
Murugiah, S. (19 March, 2020a). KLCI slumps to 11-year low as MAHB, banks and Genting stocks drag amid worsening Covid-19 pandemic. Retrieved from The Edge Markets: https://www.theedgemarkets.com/article/klci-slumps-11year-low-mahb-banks-and-genting-stocks-drag-amid-worsening-covid19-pandemic
Mustaffa, A. H., Zainal Abidin, N. B., Ahmad, N., & Ogundare, E. A. (2021). Influence of COVID-19's active cases on Malaysia's key economic performance indicators. Journal of Emerging Economies & Islamic Research, 9(1), 68-87. Retrieved from https://ir.uitm.edu.my/id/eprint/47445/
Narayan, P. K., BachPhan, D. H., & Liu, G. (2021). COVID-19 lockdowns, stimulus packages, travel bans, and stock returns. Finance Research Letters, 38, 101732. Retrieved from https://www.sciencedirect.com/science/article/abs/pii/S154461232030934X
Povera, A., & Chan, D. (7 June, 2020). CMCO to end, replaced with RMCO until Aug 31 [NSTTV]. Retrieved from New Straits Times: https://www.nst.com.my/news/nation/2020/06/598700/cmco-end%C2%A0replaced-rmco-until-aug-31
Pung, R., Chiew, C. J., Young, B. E., Chin, S., Chen, M. I.-C., Clapham, H. E., . . . Lee, V. (2020). Investigation of three clusters of COVID-19 in Singapore: implications for surveillance and response measures. Elsevier Public Health Emergency Collection, 1039-1046. doi:10.1016/S0140-6736(20)30528-6
Saad, N. M., Mohamad, N. E., & Haniff, M. N. (2020). Relationship between Share Price and COVID Cases among All Sectors in Main Market of Bursa Malaysia. Global Business and Management Research: An International Journa, 12(4), 455-465. Retrieved from http://gbmrjournal.com/pdf/v12n4/V12N4-43.pdf
Sipalan, J. (16 March, 2021). Malaysia investment slump shows need for structural reforms -World Bank. Retrieved from Reuters: https://www.reuters.com/article/malaysia-economy-worldbank-idINL4N2LD1DO
Topcu, M., & Gulal, O. S. (2020). The impact of COVID-19 on emerging stock markets. Finance Research Letters,, 101691. Retrieved from https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7348595/pdf/main.pdf
Yang, H., & Deng, P. (2021). The Impact of COVID-19 and Government Intervention on Stock Markets of OECD Countries. Asian Economics Letters, 1(4), 18646. Retrieved from https://a-e-l.scholasticahq.com/article/18646-the-impact-of-covid-19-and-government-intervention-on-stock-markets-of-oecd-countries
Lee, W. J., Liew, V. K. Sen, & Wong, S. S. L. (2025). The Impact of COVID-19 Pandemic on Malaysian Stock Performance. International Journal of Academic Research in Economics and Management Sciences, 14(3), 604-611.
Copyright: © 2025 The Author(s)
Published by HRMARS (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode