Impact of COVID-19 Spawned Factors on Emerging Markets’ Reaction A Case of Pakistan Stock Exchange

Abstract

The outbreak of COVID-19 has affected stock markets worldwide and caused considerable losses to investors and economies. Pakistan's stock exchange was also impacted by this pandemic and remained volatile from January 2020 till September 2020. Many different factors spurred during this time and influenced the trade volume of the stock market. We have applied the LDA topic modeling technique to find out those factors. The results demonstrated that international stock markets news, announcements from the government, the World health organization's announcements, and COVID-19 vaccine progress were the main factors that caused the Pakistani stock market volatility.