Abstract
The study examines the impact of covid-19 on the stock return of 12 pharmaceutical companies listed at Pakistan stock exchange known as KSE-100 index. This study collects stock prices data from December 31, 2018 to March31, 2020. For data analysis, event study methodology has been employed. It is concluded that the average abnormal returns of the pharmaceutical companies are insignificant because market was already at its lowest point at 28764.63 (100 Index) before the announcement of covid-19. The political instability and lack of good governance are the main reasons for that decline. But the accumulativeabnormal returns for all the companies are found significant. This study recommended that investors have to take the long position in investment decisions because this type of abrupt and sudden events like Covid-19 do not have the long elastic effects on the stock markets.
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