The impact of Covid-19 pandemic and financial asset prices on the performance of the Vietnam stock exchange

Abstract

The paper is to examine the impact of the Covid-19 pandemic and external shocks, which can come from changes in oil prices and financial asset prices on the stock exchange performance in an emerging economy. By drawing the daily time - series data covering in the period of Jan 23rd 2020 to Jun 4th 2021, and the non-linear autoregressive distributed lag (NARDL) for analyzing the positive and negative co-integrated variables, the research results indicate that there is no impact of Covid-19 pandemic on the performance of the Vietnam stock exchange. In addition, our findings support a long - run relationship between oil price volatility and the stock exchange fluctuations. Further discussed on the short - run relationship, it is evident that raise in gold price causes to decrease the stock performance while the fluctuations of oil prices have a positive and significant impact on the growth of the stock exchanges. In terms of cryptocurrency and its fluctuations on stock exchange, an increase or a decrease in cryptocurrency prices is positively/negatively consistent with the growth of stock exchange but this effect is quite small. Finally, the research has some implications for investors in the light of investing on the stock exchanges during the pandemic.