THE IMPACT OF MALAYSIAN INDICES PERFORMANCE AND COVID19 PANDEMIC ON RAKUTEN INVESTMENT PORTFOLIO RETURN

Abstract

The global outbreak of the COVID-19 pandemic in early 2020 had far-reaching consequences on various aspects of the global economy, including financial markets. Stock indices across the world experienced significant fluctuations and volatility as investors grappled with the uncertainty and economic disruption caused by the pandemic. In Malaysia, the impact of the pandemic on stock market performance was particularly noteworthy, with the Malaysian indices witnessing substantial swings. This study investigates the impact of the performance of Malaysian indices and the COVID-19 pandemic on the returns of the Rakuten Investment Portfolio. It utilizes monthly data from January 2017 to December 2023 and employs a time-series analysis to explore these relationships. Our findings reveal a significant influence of Malaysian indices performance on the returns of the Rakuten portfolio, signifying that market trends largely shape the portfolio's performance. The study underlines the need for robust risk management strategies and diversification to mitigate the adverse effects of market volatility and global crises on investment portfolio returns.