الملخص الإنجليزي
ABSTRACT:
This study assesses the dynamic interconnectedness and transference of effects among burgeoning stock exchanges in Sub-Saharan Africa and between African and developed markets following the Ukrainian crisis in February 2022. In addition, the paper presents a comparative analysis of return and volatility during three distinct subperiods. These are the 2008 financial crisis, the COVID-19 pandemic in 2020, and the ongoing Ukrainian conflict. This paper conducts research using the Bai-Perron test for multiple structural breaks and the spillover index of Diebold and Yilmaz (2012), alongside the innovation accounting analysis test. The findings of this paper indicate that the resilience and isolation of stock markets in
Africa to external financial shocks (volatility shock) have been weakened in the wake of the Ukrainian crisis and the COVID-19 pandemic as compared to the GFC sub-period. The results affirm that stock markets on the African continent have become more sensitive to structural changes and shocks in developed countries. This study has significant implications for investors and policymakers in Africa. Future investors need to genuinely diversify their investment portfolios to minimize future losses generated by shock transmission among markets. Policymakers might have to introduce fully fledged policies to diversify their
economies and attract international investments.
