COVID-19 and Stock Market Resilience in Algeria A Descriptive and Analytical Assessment of the Algiers Stock Exchange

Abstract

The COVID-19 pandemic generated an unprecedented combination of health, economic, and financial shocks, disrupting production, consumption, investment, international trade, and financial-market activity. While the pandemic triggered severe volatility in major global financial markets, its consequences for small and relatively illiquid emerging markets require a more specific assessment. This study examines the impact of the COVID-19 pandemic on the Algerian stock market, with particular emphasis on the Algiers Stock Exchange. A descriptive and analytical approach is adopted using official market statistics and institutional reports covering the pre-pandemic, pandemic, and post-pandemic periods. The analysis focuses on market capitalization, transaction values, trading activity, and the evolution of the DZAIRINDEX. The findings show that the pandemic was associated with a significant deterioration in trading activity during 2020. The value of stock-market transactions declined from DZD 41.30 billion in 2019 to DZD 38.86 billion in 2020, while the first-semester market statistics showed a much sharper contraction in the value traded on the main equity market and in the number of transactions. However, the aggregate market capitalization and stock index did not experience a collapse comparable to that observed in several major international markets. The post-pandemic period subsequently witnessed a substantial expansion of the Algerian financial market. The value of transactions increased to DZD 103.66 billion in 2022, DZD 192.77 billion in 2023, DZD 350.16 billion in 2024, and DZD 599.20 billion in 2025. In 2024, market capitalization increased dramatically to DZD 521.669 billion, mainly following the initial public offering of Crédit Populaire d’Algérie. The evidence suggests that COVID-19 generated a temporary disruption in market activity but did not permanently impair the development of the Algerian stock market. Nevertheless, the crisis revealed persistent structural weaknesses related to liquidity, market depth, diversification, and investor participation. The study concludes that strengthening digital infrastructure, broadening the investor base, increasing the number of listed companies, improving disclosure, and developing crisis-management mechanisms are essential for enhancing the resilience of the Algerian financial market.