Daniel, Joseph2024-03-182024-03-182023Daniel, J. (2023). The effect of investors' trading behavior on the performance of Dar es salaam Stock Exchange before and during the COVID-19 pandemic, (Master's Dissertation). The University of Dodoma.https://repository.udom.ac.tz/handle/20.500.12661/4314Dissertation (MA Economics)This study delves into the profound impact of the Covid-19 pandemic on the Dar es Salaam Stock Exchange (DSE) and scrutinizes the intricate relationship between investors' trading behavior and stock market performance. The pandemic-induced disruptions are evident in significant declines in equity turnover, trading value, and market capitalization. Noteworthy is the cautious investor sentiment during the pandemic, marked by decreased trading activities and a 12% dip in total market capitalization. The study employs a quantitative research design, utilizing panel data analysis to navigate distinct periods before and during the pandemic. Results reveal nuanced correlations, such as increased domestic buying correlating with diminished market optimism, yet during the pandemic, leading to higher returns. Selling activity, both domestic and foreign, is linked to lower returns, yet during the pandemic, higher sales yield increased returns, indicating a unique market response to uncertainty. The study extends its analysis to stock market indices, shedding light on the complex interplay between citizens' purchasing behavior, market capitalization, and index performance. Conclusively, the research underscores the substantial influence of trading behavior on stock market dynamics, influenced by factors like market sentiment and government interventions, offering avenues for future exploration in behavioral factors, event studies, and cross-market impacts.enCovid-19Dar es Salaam Stock Exchangepandemicinvestors' trading behaviorstock market performanceThesis