Rania Hamdi Ramadan Elsayed1
Introduction
The 2008 financial crisis is regarded as the most severe crisis that the in- ternational economy has faced since the era of the international slump (1929–
1931). In reality, its impact is felt not only in the industrialized nations, but also in emerging countries like Egypt, where economic openness has a detri- mental impact on their economy. However, this is all changing. In December 2019, a major outbreak of coronavirus crisis began in Wuhan China, i contin- ued to spread around the world, with over 185 million verified cases globally.
Since the start of the pandemic, Egypt has recorded 282,257 positive cases and 16,284 coronavirus-related fatalities, now The average number of new infections recorded each day in Egypt has dropped by more than 500 in the prior three weeks [9]; [12].
COVID 19 has expanded fast as a result of globalization and greater integration of the international economy, impacting all advanced nations, in- cluding Americans and Europeans, as well as developing ones, [11] illustrates that illnesses may kill individuals from any social and economic category in any culture if they are caused by overpopulation and poor public health in underdeveloped countries, like the country we are discussing about Egypt.
This prompted governments all around the world to instruct their citi- zens to limit their regular activities for an extended length of time. To prevent the spread of the disease, the country's export and import operations, as well as all foreign flights, have been temporarily halted, this series of actions taken to avoid the COVID-19 results in a decrease in cash flow among the people, as well as a lack of import and export, which causes the majority of companies to lose material sources and labor for normal operations, and also completely eliminates the major source of foreign currency income through tourism.
The majority of foreign investors shift their investing strategy away from equity and toward gold and other commodities. As a result of COVID-19, the stock market has taken a significant hit. The average price and total trad- ed amount of the Indian stock market have been impacted by COVID-19
[4]. The Egyptian Stock Exchange has taken the lead among regional stock exchanges in developing a range of indicators meant to assess market perfor- mance based on liquidity rates and investor demands [5].
The COVID-19 epidemic has caused massive and disparate stock price fluctuations. The S&P 500 plummeted 34% from its peak to its low in the first quarter of 2020, while exchanges in Brazil, Hong Kong, Italy, and Japan witnessed high-low losses of 46%, 25%, 42%, and 31%, respectively [3]. As a result, this article will analyze whether the Egyptian exchange market has suffered from the epidemic or if it is still thriving
Literature review and Discussion
They tries to analyze the impact of the COVID-19 spread on Egyptian Exchange sectorial indexes from March 1, 2020 to May 10, 2020 According to the findings, stock market sectors appear to be more sensitive to cumulative daily deaths than to new daily deaths, and to new cases more than cumulative cases [5].
Using the universe of S&P1500 businesses [6]. Investigates the influence of COVID-19 on stock market behavior during the March 2020 crisis. The findings illustrate that, natural gas, food, healthcare, and software companies generate significant positive returns, but equity prices in the petroleum, real estate, entertainment, and hospitality industries plummet dramatically [8].
They Tries to explore the impact of COVID 19 on various sectors of the Indian economy, as well as assess risk and returns during the pandemic period while evaluating volatility for this purpose, the closing stock prices of the BSE SENSEX and many other sectorial indexes have been obtained from Decem- ber 2nd to April 28th, 2020, The data show that the average return for all sec- torial indexes was negative over this time period. Automobiles, metal industry, public sector undertakings, real estate, industry, and capital goods industries are among the sectors that have been heavily hit. The results show an increase in volatility in the Indian stock market [7]. The author investigates the finan- cial market's reaction to the COVID-19 using daily COVID-19 confirmed cases, fatalities, and stock market returns data from 64 nations from January 22, 2020 to April 17, 2020, the study discovered that stock markets reacted unfavorably to the increase in COVID-19 confirmed cases [2].
The study aims to look at the consequences of Coronavirus spread on financial markets; the spread of the Coronavirus has been quantified in terms of cumulative cases, new cases, cumulative deaths, and new fatalities. This was applied on a daily basis to the poorest six countries from March 1, 2020 to April 10, 2020, According to the findings, stock market returns appear to be more sensitive to Coronavirus cases than fatalities, and to Coronavirus cu-
mulative indications rather than fresh ones. Furthermore, the robustness test supports the detrimental impact of Coronavirus propagation on stock market returns in China, France, Germany, and Spain. These impacts, however, have not been proven for Italy and the United States [1].
The study tries to analyze the impact of the 2020 Covid-19 global spread on GCC stock markets during the research period, results there were sub- stantial variations in the stock market indexes. Furthermore, it appears that stock market returns are sensitive to new Coronavirus fatalities [1]. Investi- gates the impact of the COVID-19 pandemic on six different stock markets the findings demonstrate the impact of the COVID-19 epidemic on dynamic conditional correlations. From 2005 to 2019, the Chinese and Turkish stock markets weakened, while the epidemic resulted in a 20% increase. Some other market pairings are down by about 10% [10].
Conclusion
As evidenced by prior research, whether you live in a developed or unde- veloped country, you will get bitten by Covid-19. As expected The Egyptian Stock Exchange (EGX) has seen ups and downs since the beginning of 2020, particularly in the two major indexes EGX100 and EGX30, which caused the EGX to stop trading for half an hour on March 1, Because of the COVID-19 (coronavirus) outbreak, the EGX began the week in the red owing to Egyptian and Arab selling, registering losses of $31.98 billion in market capitalization, with a decrease of more than 6% for both the EGX 30 and EGX 100 indexes.
Nonetheless, the EGX began to rebound on March 2 and has managed to make up for its losses. In reality, the EGX's performance deteriorated in February, with a 5% drop in market capitalization and a $29 billion loss. An additional reason for the bad performance of EGX the drop in the value of the US dollar versus the Egyptian pound, which limited the opportunities for firms listed for exporting.
Also imposing taxes on traders and transactions harms session perfor- mance because it compels traders to endure financial constraints at a time when the market is experiencing poor economic conditions on several levels.
Although it can be seen that only Covid-19 harm the market but in fact it was only one reason that show what market can recover fast and what market has a serious problems that need to be fixed. My suggestion Egypt must take advantage of this scenario to boost indigenous production in order to replace imported goods. This will invigorate the market, generate new employment, and, as a result, attract new investors to the EGX.
Reference
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