COVID-19 and Liquidity Dynamics: Analyzing ASEAN-6 Stock Markets During and Post-Pandemic

This study investigates liquidity trends in key Southeast Asian markets, specifically focusing on the ASEAN-6 countries (Indonesia, Thailand, Singapore, Malaysia, Vietnam, and the Philippines) during and after the COVID-19 pandemic. Utilizing regression models, we analyze how trading volume, volatil...

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Main Authors: Chi Pham Thi Bich, Linh Nguyen Ha, Thu Vu Thi Minh
Format: Article
Language:English
Published: SAGE Publishing 2025-04-01
Series:SAGE Open
Online Access:https://doi.org/10.1177/21582440251336112
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author Chi Pham Thi Bich
Linh Nguyen Ha
Thu Vu Thi Minh
author_facet Chi Pham Thi Bich
Linh Nguyen Ha
Thu Vu Thi Minh
author_sort Chi Pham Thi Bich
collection DOAJ
description This study investigates liquidity trends in key Southeast Asian markets, specifically focusing on the ASEAN-6 countries (Indonesia, Thailand, Singapore, Malaysia, Vietnam, and the Philippines) during and after the COVID-19 pandemic. Utilizing regression models, we analyze how trading volume, volatility, price movements, and their interactions have collectively influenced liquidity dynamics across these markets within 121 days around the pandemic’s announcement. We use three primary liquidity indicators: bid-ask spreads, Amihud’s illiquidity ratio, and the return-turnover ratio. The findings indicate that in the short term, COVID-19 shock, trading volume, and volatility significantly affected liquidity across the ASEAN-6 indices, with notable variations among the markets. Specifically, the Singapore and Malaysia markets demonstrated a greater capacity to absorb and adapt to pandemic-induced disruptions, showing the least decline and a swift recovery within 121 days around the pandemic’s announcement. Furthermore, our descriptive analysis highlights that Indonesia, Singapore, and Malaysia (KLSE) have emerged as the top-performing markets in terms of liquidity throughout the pandemic and its aftermath.
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spelling doaj-art-a79ab354adc543dfaaab4fb786171d7f2025-08-20T02:55:56ZengSAGE PublishingSAGE Open2158-24402025-04-011510.1177/21582440251336112COVID-19 and Liquidity Dynamics: Analyzing ASEAN-6 Stock Markets During and Post-PandemicChi Pham Thi Bich0Linh Nguyen Ha1Thu Vu Thi Minh2 National Economics University, Hanoi, Vietnam National Economics University, Hanoi, Vietnam National Economics University, Hanoi, VietnamThis study investigates liquidity trends in key Southeast Asian markets, specifically focusing on the ASEAN-6 countries (Indonesia, Thailand, Singapore, Malaysia, Vietnam, and the Philippines) during and after the COVID-19 pandemic. Utilizing regression models, we analyze how trading volume, volatility, price movements, and their interactions have collectively influenced liquidity dynamics across these markets within 121 days around the pandemic’s announcement. We use three primary liquidity indicators: bid-ask spreads, Amihud’s illiquidity ratio, and the return-turnover ratio. The findings indicate that in the short term, COVID-19 shock, trading volume, and volatility significantly affected liquidity across the ASEAN-6 indices, with notable variations among the markets. Specifically, the Singapore and Malaysia markets demonstrated a greater capacity to absorb and adapt to pandemic-induced disruptions, showing the least decline and a swift recovery within 121 days around the pandemic’s announcement. Furthermore, our descriptive analysis highlights that Indonesia, Singapore, and Malaysia (KLSE) have emerged as the top-performing markets in terms of liquidity throughout the pandemic and its aftermath.https://doi.org/10.1177/21582440251336112
spellingShingle Chi Pham Thi Bich
Linh Nguyen Ha
Thu Vu Thi Minh
COVID-19 and Liquidity Dynamics: Analyzing ASEAN-6 Stock Markets During and Post-Pandemic
SAGE Open
title COVID-19 and Liquidity Dynamics: Analyzing ASEAN-6 Stock Markets During and Post-Pandemic
title_full COVID-19 and Liquidity Dynamics: Analyzing ASEAN-6 Stock Markets During and Post-Pandemic
title_fullStr COVID-19 and Liquidity Dynamics: Analyzing ASEAN-6 Stock Markets During and Post-Pandemic
title_full_unstemmed COVID-19 and Liquidity Dynamics: Analyzing ASEAN-6 Stock Markets During and Post-Pandemic
title_short COVID-19 and Liquidity Dynamics: Analyzing ASEAN-6 Stock Markets During and Post-Pandemic
title_sort covid 19 and liquidity dynamics analyzing asean 6 stock markets during and post pandemic
url https://doi.org/10.1177/21582440251336112
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AT linhnguyenha covid19andliquiditydynamicsanalyzingasean6stockmarketsduringandpostpandemic
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