Utjecaj pandemije COVID-19 na burzovne indekse odabranih zemalja
Impact of the COVID-19 pandemics on stock market indices in selected economies

Summary/Abstract: The aim of this paper is to investigate the impact of the coronavirus pandemic on trends in key stock market indices of selected economies. Data on the number of newly infected, vaccinated, and deceased persons, and on the frequency of searches for the words Coronavirus, Pandemic and Lockdown were collected to analyze their effect on changes in stock market indices on a daily and weekly basis. The results of the correlation analysis show that numbers of newly infected, vaccinated, and deceased persons did not significantly affect the decline of most of the indices, which had started even before the first recorded case in that economy. Still, keyword searches had an effect on the movement of indices, which is reflected in the fact that the frequency indices of searches for keywords reached maximum annual values in the weeks preceding the decline of indices. The correlation between the expected and realized gross domestic product and the movement of stock exchange indices was also confirmed, where a moderately strong and strong positive relationship is observed. The results of the research confirm that conducting such an analysis could have been used in the prediction of short-term trends in the analyzed market indices.Investments in fixed assets increase exports of a not fully export-oriented company more than a fully export-oriented company.

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