The Impact of Coronavirus Epidemic on the Financial Market Performance in the Kingdom of Bahrain

Abstract

This study has investigated the impact of coronavirus epidemic on the Financial Markets performance in the Kingdom of Bahrain. The study uses the data of COVID-19 based on daily positive cases and the closing prices of Bahrain index from the date 1st of March 2020 to end of May 2021. In addition, this study uses Crude oil prices as a control variable on the relationship between coronavirus epidemic and financial markets performance. The study used SPSS to analyze the influence of pandemic of COVID-19 positive cases as the independent variable, and Bahrain Financial market performance as the dependent variable. The research findings revealed that the coronavirus epidemic has negatively influenced the financial market performance in the Kingdom of Bahrain. This means that positive coronavirus cases had a significant impact on the stock market prices from 1st March 2020 to May 2021 in the Kingdom of Bahrain. It is recommended that Bahrain’s government promoting the vaccination for all Bahrain’s residents to get rid of the virus quickly, and preserve the people health, which may result in the regaining of the financial market performance.