The COVID-19 Pandemic's Impact on Moroccan Sectoral Indices: A Perspective Through Entropy

Abstract

This study analyzes how the COVID-19 pandemic impacted Morocco’s stock market sectoral indices’ volatility from February 1, 2019, up to May 1, 2022. Using Rényi entropy, the research measured volatility across sectors such as mining, distributors, food producers and processors, beverage, construction and building Materials, oil and gas, and banking. Results indicate increased volatility during the pandemic, except for the Oil and Gas sector. Consumer staples showed resilience, while Mining and Construction stocks were considered risky. Post-pandemic, entropy levels readjusted, with the Beverage sector remaining stable. These findings assist governments, businesses, and investors in formulating recovery strategies.