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Research Paper | Finance | Tanzania | Volume 9 Issue 10, October 2020

The Effects of COVID-19 on Stock Market Performance: Evidence from Dar Es Salaam Stock Exchange

Dr. Samwel Marwa Werema

Abstract: This article examines the Impact of COVID-19 on Stock Market Performance: Evidence from Dar Es Salaam Stock Exchange. Using conventional t-tests and nonparametric Mann–Whitney tests, we empirically analyze daily return data from Dar Es Salaam Stock Exchange (DSE). The study uses an event study methodology that employs sales turnover measures of operating performance where an analysis of the companies that listed in DSE for the period from March – July 2020 is used. The consequences of infectious disease are considerable and have been directly affecting stock market in Tanzania. Our results indicate that the stock market in Tanzania fell quickly after the virus outbreak. There is a significant decline in daily return in the four months following the announcement of the Outbreak of COVID-19 in Tanzania, that is, March – July 2020. The study contributes to the literature in at least two important ways: First, we contribute to the studies which have examined the stock market response to different disasters and crises. Second, we contribute to the recently emerging literature which examines the impact of COVID-19 on financial markets.

Keywords: COVID-19, coronavirus disease, stock market performance

Edition: Volume 9 Issue 10, October 2020,

Pages: 990 - 996

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