Thesis Public Defense | VNP26 - Phan Trung Hieu

The impact of COVID-19 on Vietnam’s market performances by sector: a study on return and behavior

Student: Phan Trung Hieu, VNP-26

Supervisor: Dr. Vu Viet Quang

Abstract:

 Beginning at the end of 2019, the coronavirus has gradually wreaked havoc on the health and lives of individuals in the countries it has traversed, leading to significant and enduring economic damage, exacerbating the economic outlook, and precipitating a widespread recession and crisis. The primary objective of this paper is to provide valuable insights for investors and regulators, enabling them to enhance their comprehension of the stock market and the financial implications of the Covid-19 pandemic. To achieve this, we employed the event research method to analyze stock data from Thomson Reuters DataStream, focusing on 358 Vietnamese companies categorized into 11 GICS sectors and listed on the Ho Chi Minh Stock Exchange. The study period spans from January 5, 2015, to June 10, 2021. Additionally, we examined herding behavior within Vietnam’s stock market. The empirical results elucidate that the sudden onset of the Covid-19 outbreak has substantially influenced the abnormal returns and behaviors exhibited by participants in Vietnam’s stock market. Notably, the degree of this influence varies across different sectors, including transportation industrials, utilities (negative), and insurance financials (positive).

Keywords: Covid-19, Market performance, Stock Return, Herding Behavior, Vietnam industries, Event Study

JEL: G01, G14, G40