Effect of Covid-19 Pandemic on the Weekly Stock Prices of Financial Institutions: A Comparison of East African Security Markets

Abstract

This study aimed at comparing the effect of the COVID-19 pandemic on the weekly stock prices of financial institutions registered among the East African securities markets (EAC). The study employed a descriptive research design. The findings suggest that stock prices were negatively affected by the COVID-19 pandemic. Weekly closing prices during the COVID-19 pandemic was significantly different from the weekly stock prices of the period before the pandemic. The comparison showed that during the pandemic, the difference in weekly stock prices was significant between Tanzania and Kenya as well as Uganda and Kenya. Uganda suffered the worst effect of the COVID pandemic. The fluctuations in weekly stock prices were higher before the pandemic period as compared to the pandemic period. The t-test concluded that those changes in fluctuation were statistically significant for the EAC bloc except for Tanzania. The researchers recommend that institutions governing the economy in which the stock markets operate adhere to the objective truth during times of crisis such as the COVID-19 pandemic.