Abstract:

This study aims to investigate the impact of Covid-19 pandemic on BIST sector indicators. The study used daily data for the period from 12 March 2020 to 31 August 2020. The asymmetric relationship between Covid-19 cases and deaths and industry indicators was studied by the Hatemi-J asymmetric causality test. As a result of the test, the positive shocks in the number of Covid-19 cases were found to cause negative shocks in the financial index, while the causal relationship between the number of deaths and the financial index was not identified. The positive (negative) shock in the number of Covid-19 cases has been shown to cause negative shock in some periods on the Service Index. Also, positive shock in the number of deaths causes negative shock in the Service Index. The positive (negative) shock that occurs in Covid-19 cases and deaths causes negative shock in some periods to the positive (negative) index. The positive (negative) shock in Covid-19 cases and deaths causes a positive shock in the Technology Index. These findings show that the Covid-19 pandemic has a negative impact on the financial sector index, while technology has a positive impact on the sector index.

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