The impact of COVID‑19 pandemic on Islamic versus conventional stock markets: international evidence from financial markets

Nomran, Naji and Haron, Razali (2021) The impact of COVID‑19 pandemic on Islamic versus conventional stock markets: international evidence from financial markets. Future Business Journal, 7 (33). pp. 1-16. ISSN 2314-7202 E-ISSN 2314-7210

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Abstract

This study employs sample t-tests and panel pooled OLS regression to investigate the impact of COVID-19 pandemic on Islamic versus conventional stock markets returns. The study uses daily data from 15 countries over the period of September 01, 2019–April 30, 2020, which covers two main periods and over four sub-periods. Findings reveal that the returns of Islamic indices begun to be positive instead of negative by mid-April 2020, while returns of conventional ones remain negative throughout the periods. Furthermore, the results suggest a negative and statistically significant impact of COVID-19 on the performance of both stock indices. Nevertheless, this impact is weak on the Islamic indices and strong on the conventional ones. Overall, the findings indicate that Islamic stock markets perform better before and during COVID-19 than the conventional ones, and the adverse impact of the pandemic on the stock markets is relatively lesser for the Islamic indices.

Item Type:	Article (Journal)
Uncontrolled Keywords:	Financial markets, Islamic stock market, Conventional stock market, COVID-19, Coronavirus, Pandemic
Subjects:	H Social Sciences > HG Finance H Social Sciences > HG Finance > HG3368 Islamic Banking and Finance
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Institute of Islamic Banking & Finance (IIiBF)
Depositing User:	Dr. Razali Haron
Date Deposited:	10 Sep 2021 08:43
Last Modified:	10 Sep 2021 08:43
URI:	http://irep.iium.edu.my/id/eprint/92131

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