IDEAS home Printed from https://ideas.repec.org/a/eee/finlet/v67y2024ipas1544612324007591.html
   My bibliography  Save this article

Blackouts and stock markets: Evidence from load-shedding in South Africa

Author

Listed:
  • Obalade, Adefemi A.
  • Tita, Anthanasius F.
  • French, Joseph J.

Abstract

This study examines the impact of an energy crisis (load shedding) on South African sector equity returns and volatilities utilizing daily data and GARCH models. Our findings reveal heterogeneous responses across industries. Basic materials, consumer discretionary, industrial, and telecommunications sectors show resilience, with no significant impact on returns from higher load shedding stages. Consumer staples, financial, technology, and energy sectors exhibit negative relationships between returns and load shedding intensity. Notably, the health sector demonstrates a positive response to elevated load shedding levels. Counter-intuitively we find insignificant or negative impacts on industry volatilities to increased levels of load shedding. Our study contributes to understanding market behaviour under persistent economic stress and has implications for investors and policymakers in emerging markets.

Suggested Citation

  • Obalade, Adefemi A. & Tita, Anthanasius F. & French, Joseph J., 2024. "Blackouts and stock markets: Evidence from load-shedding in South Africa," Finance Research Letters, Elsevier, vol. 67(PA).
  • Handle: RePEc:eee:finlet:v:67:y:2024:i:pa:s1544612324007591
    DOI: 10.1016/j.frl.2024.105729
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1544612324007591
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.frl.2024.105729?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Obalade Adefemi A. & Muzindutsi Paul-Francois, 2019. "The Adaptive Market Hypothesis and the Day-of-the-Week Effect in African Stock Markets: the Markov Switching Model," Comparative Economic Research, Sciendo, vol. 22(3), pages 145-162, September.
    2. Vilija Aleknevičienė & Vaida Klasauskaitė & Eglė Aleknevičiūtė, 2022. "Behavior of calendar anomalies and the adaptive market hypothesis: evidence from the Baltic stock markets," Journal of Baltic Studies, Taylor & Francis Journals, vol. 53(2), pages 187-210, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Abdul Karim & Abdul Rasheed, 2024. "Forecasting Modeling of Day of the Week Calendar Anomalies in Pakistan Stock Exchange: An Artificial Intelligence Perspective," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 13(2), pages 436-447.
    2. Obalade Adefemi A. & Muzindutsi Paul-Francois, 2019. "Calendar Anomalies, Market Regimes, and the Adaptive Market Hypothesis in African Stock Markets," Journal of Management and Business Administration. Central Europe, Sciendo, vol. 27(4), pages 71-94, December.

    More about this item

    Keywords

    Load-shedding; Energy crisis; Calendar anomalies; Africa;
    All these keywords.

    JEL classification:

    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • G1 - Financial Economics - - General Financial Markets
    • G4 - Financial Economics - - Behavioral Finance

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:finlet:v:67:y:2024:i:pa:s1544612324007591. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/frl .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.