Aim/purpose – The aim of this research is to analyses the impact of COVID-19 cases and deaths on the return of stocks in the main indexes in China and Palestine.
Design/methodology/approach – Three econometric models used to predict the data for the growth in stocks return from main indexes in China since the first confirmed cases recorded in 22/01/2020 to 31/01/2021, and since the first confirmed cases recorded in 05/03/2020 to 31/01/2021 in Palestine.
Findings – The Outcomes revealed that there is no impact of growth in cases on stock market returns may be for reasons like governmental policies, the highly increase in the new cases in the period of research, and finally the increase of the returns in some sector like technology. Moreover, the research shows that there is no impact of growth in deaths on stock market returns because of that recorded as cases and it occurs several days after the test of PCR (covid-19) shows that the result is positive then it recorded as death.
Research implications/limitations – The main limitation of this research is that the statistics are small and experiments such as this require a sufficient number of observations and that certain variables do not occur on a daily basis, such as the interest rate.
Originality/value/contribution – This work offers a significant contribution in terms of subject matter, there is a lack of analysis that deals with COVID-19 and stock market returns, this research also provides most economic knowledge on the effect of covid-19 cases and death on stock returns, and also allows other researchers to write and look for other determinants and to create a comparative report.
Keywords: SSCE, SEZE, Stock return, Al-Quds index, Exchange rates, COVID-19, Macroeconomic, China, Palestine.