摘要：Covid-19 pandemic has devastating effects similar to many outbreaks such as plague or “black death” in the past. Covid-19 does not only undermine the healthcare industry but also deeply affects the financial markets. Undoubtedly, stock markets are among the most financial markets. This study aims to determine the effect of Covid-19 pandemic on Borsa Istanbul, the analysis was made using daily data between 31.12.2019-28.05.2020 and short and long term forecasts using error correction and robust models. BIST 100 index was chosen as the dependent variable, Covid-19 mortality rate, Exchange rate, the fear index, infectious diseases, and capital markets, the volatility index, and international equity index arguments have included the model as independent variables. From findings, it was determined that the selected variables were cointegrated and the error correction model was estimated and the rate of adjustment in the long term was estimated. According to the empirical results of both models, the pandemic process is effective on the BIST 100 in the short and long term with chosen control variables. Financial instruments including investments made considering the uncertainties in the investment decision-makers not to that period motive they act with that cash and therefore lead to saving motive in moving away from the stock market. At the same time, fluctuations in the indices will be inevitable as they will be included in the supply-side restriction in contraction processes in the companies operating in the stock market.
