The Impact of the COVID-19 Lockdown Measures on The Stock Performance of a Defensive Sector: The Malaysian Experience

Abstract

This study explores the performance of the utilities sector in Malaysia amidst the outbreak of COVID-19 and the subsequent implementation of movement control orders (MCOs). Despite concerns over the devastating effects of restricted MCOs on Malaysia's economy, this research focuses on the utilities sector as a defensive investment. A population of 12 listed utilities firms is analysed using paired sample t-tests to examine the sector's performance in relation to MCOs. The empirical findings provide compelling evidence of the negative impact of the epidemic disease outbreak on the utilities sector in Malaysia. This study contributes to the existing literature on the effects of a dreaded disease on the utilities sector and provides valuable insights for investors on defensive investments during unpredictable events.