The Impact of Covid-19 on Financial Markets Performance: An Empirical Study in Amman Stock Exchange

The purpose of this study is to determine the impact of the global health pandemic, Coronavirus (Covid-19) on the performance of the Amman Stock Exchange (ASE). The study has adopted descriptive analytical approach design which the data has been gathered from Amman Stock Exchange (ASE) from 2/3/2020 to 20/5/2021. As well as, the number of COVID-19 confirmed cases and deaths are collected from Ministry of Health (MOH). The variables which were considered in the study include market capitalization, trading volume and P/E. In terms of the analysis, (E-Views) time series method has been applied. The results of this study identified that Covid-19 represented by the change in the number of daily cases and the number of deaths have a significant impact on the performance of the Amman Stock Exchange. Moreover, Covid-19 explained (67.8%) of the changes in market capitalization, (78.3%) of the changes in trading volume, and (98.5%) of the changes in the Price-Earnings Ratio (P/E).There may be opportunities associated with crises. As a result of COVID-19, market inefficiency creates profitable opportunities for traders and speculators. This study is primarily for policymakers of developing countries, for formulating their countries' economic and innovation policies. Which there is limitations of the studies that focused on developed countries specially Jordan the findings of the study are delimited to Jordanian stock market returns.