The effects of the COVID-19 crisis on Borsa Istanbul in the context of global crises

Mankind, who has faced various epidemics throughout the history of humanity, has had to struggle with many epidemics in the 21st century. The Covid-19 epidemic, which emerged in Wuhan, China in December 2019, brought life to a standstill in the global world. The epidemic, which is effective in all areas of life, has also caused great destruction in the economy. In this study, it is aimed to examine the effects of Covid-19 on the stock market. The main idea of the study is that the increase in the number of Covid-19 cases caused the change in the value of BIST30 shares. While examining the effects of the epidemic on the stock market, the 30 companies that are traded the most in Borsa Istanbul as a dependent variable and the number of Covid-19 cases as an independent variable were analyzed. In the first stage of the analysis, Augmented Dickey-Fuller and Phillips-Perron tests were used to examine whether there was a unit root between the variables. In the second stage of the analysis, the Granger Causality Test and the Toda-Yamamoto Causality Test were applied to examine the causality between the dependent variable and the independent variable. As a result of the analysis, it was concluded that there was no causality between the weekly percentage changes of the variables. In response to the result obtained, the weekly averages of the variables were taken and the same analysis methods were applied again. As a result of the second analysis, it was concluded that the number of Covid-19 cases was the Granger cause of BIST30.