The impact of COVID-19 on industrial products and services sector of Bursa Malaysia by using minimum spanning tree

Bahaludin, Hafizah and Syafiq, Siti Nur Afiqah Muhammad (2021) The impact of COVID-19 on industrial products and services sector of Bursa Malaysia by using minimum spanning tree. Menemui Matematik (Discovering Mathematics), 43 (2). pp. 111-120. ISSN 2231−7023

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Abstract

The coronavirus (COVID-19) pandemic is causing broad concern and financial hardship for buyers, businesses, and communities worldwide. At the beginning of the pandemic, the Malaysian government implements the moving control order (MCO) to reduce infection through personal contact. The circumstance is changing rapidly with broad impacts, especially for the industrial sector. Thus, this paper is motivated to investigate the impact of COVID-19 on the industrial product and services sector of Bursa Malaysia. Explicitly, the changes of linkages among the companies in the industrial sector are examined. The data is based on the top 30 most capitalised stocks in the industrial products and services sector traded in Bursa Malaysia. The duration before the implementation of MCO covers from 17th December 2020 until 17th March 2020. Then, the four phases of MCO cover 18th March 2020 until 12th May 2020. The daily stock prices of the 30 stocks are utilised as inputs. A minimum spanning tree (MST) technique is used to demonstrate the linkages of the companies. The findings showed significant changes in the correlation of the companies before and during the MCO. Specifically, MYRS.KL, PMAS.KL, SCTH.KL, EKOV.KL, and FRKN.KL are the most prominent stocks three months prior to MCO. Throughout MCO, EKOV.KL and FRKN.KL remain the companies with the highest overall centrality scores, while GREA.KL, BOUS.KL, and DUFU.KL are added to the list.

Item Type:	Article (Journal)
Additional Information:	9007/92960
Uncontrolled Keywords:	Financial network, Bursa Malaysia, Minimum spanning tree
Subjects:	Q Science > QA Mathematics
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Science > Department of Computational and Theoretical Sciences Kulliyyah of Science
Depositing User:	Hafizah Bahaludin
Date Deposited:	11 Oct 2021 14:33
Last Modified:	11 Oct 2021 14:33
URI:	http://irep.iium.edu.my/id/eprint/92960

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