Network analysis of bursa Malaysia’s energy sector during the COVID-19

Bahaludin, Hafizah and Mahamood, Fatin Nur Amirah (2022) Network analysis of bursa Malaysia’s energy sector during the COVID-19. In: The 12th Foundation of Islamic Finance Conference (FIFC) 2022, Malaysia. (Unpublished)

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Abstract

Challenges in the energy sector have been greatly exacerbated by Coronavirus disease (COVID-19). The COVID-19 have an impact on energy demand and consumption because of new policies and norms implemented to adapt during the pandemic. In 2020, it is predicted that global energy demand will fall by 6 percent from 2019 levels, which is seven times larger than the drop caused by the financial crisis in 2009. Due to the unprecedented situation, this paper is motivated to investigate the effect of COVID-19 on shariah-compliant energy stocks in Malaysia. The opening, highest, lowest and closing prices of each stock are taken from January 2, 2019 until December 31, 2020. The correlation among stocks is visualised using the minimum spanning tree (MST) technique and evaluated using a degree centrality measure to determine the importance of each stock on the network. The results showed that the correlation of each stock was stronger during the pandemic. Besides, the topological structure as well as the central stock of the network also changed throughout the study. In this study, Hibiscus Petroleum Bhd (HIBI.KL) is considered the most important stock for the study period. Overall, this research offers a comprehensive insight into the energy market situations.

Item Type:	Conference or Workshop Item (Invited Papers)
Uncontrolled Keywords:	COVID-19, Bursa Malaysia, Energy Sector, Shariah-compliant, Minimum spanning tree
Subjects:	Q Science > QA Mathematics
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Science > Department of Computational and Theoretical Sciences
Depositing User:	Hafizah Bahaludin
Date Deposited:	01 Nov 2022 09:01
Last Modified:	01 Nov 2022 09:01
URI:	http://irep.iium.edu.my/id/eprint/100851

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