HOW COVID-19 AFFECTED MOROCCAN STOCK MARKET? AN EMPIRICAL INQUIRY

Abstract

In this study, we explored how COVID-19 influenced Morocco's stock market by employing an ARDL (Autoregressive Distributed Lag) model. We used daily series data collected from March 5, 2020, to June 30, 2021, as the dataset in this study. Results showed that, in the long run, an increase in new cases and deaths adversely affected the stock market. Furthermore, controlled variables such as the exchange rate had a negative influence on the Moroccan stock market, whereas Standard & Poor's had a positive impact. Our findings are important for policymakers, governmental authorities, and investors as they shed light on how emerging stock markets, such as Morocco's, responded during periods of uncertainty.