Does Adapting an Elimination Strategy Insulate the New Zealand Stock Market Against the COVID-19 Pandemic?

The objective of this study is to provide insights on whether NZX 50 and sectorial indices of different industries in New Zealand have been impacted differently under the influence of COVID-19 and the measurements that government have taken in responding to the global pandemic. Results indicated that the New Zealand businesses are not immune from this pandemic despite the New Zealand government’s “go hard, go early” measure to eliminate the spread of Coronavirus. Statistical findings show that stock market and sectorial performances between the pre- and post-global pandemic period are significantly different. Most of the industries reported poorer performances except Healthcare and Consumer Staples. In addition, the NZX 50 and sectoral indices reported a significant relationship with the S&P 500 indicating that as the world become more integrated, stock market performances are displaying co-movements while responding to major events.