PERFORMANCE OF ISLAMIC AND CONVENTIONAL EQUITY INDICES IN GCC COUNTRIES DURING COVID-19

Authors

  • Mohammad Elshqirat

Abstract

The main purpose of this study was to examine the performance of Shariah-based stock indices during the pandemic of COVID-19 and to compare that to the performance of its counterparts conventional indices in gulf cooperation council (GCC) countries. Study inquires included whether Islamic indices represent a diversification opportunity during the pandemic of COVID-19 and whether the effect of the pandemic on the performance of Islamic and conventional indices is different. Quantitative method of research was followed to achieve the objectives of this study by testing returns on the included Islamic and conventional indices for one year before the pandemic from the first of March, 2019 to the 10th of March 2020 and during the pandemic from 11th of March, 2020 to 29th of March, 2021. Risk-adjusted performance measures were used to evaluate the performance of the included indices and correlation analysis was used to determine if Islamic indices can be used as a diversification tool for the conventional indices. Data were downloaded from many websites including the websites of the GCC countries’ exchanges and analyzed using some risk-adjusted performance measures, Friedman test, and correlation analysis. Study results revealed that the effect of the pandemic on the performance of Islamic indices and their conventional counterparts is the same and that Islamic indices do not represent a diversification opportunity for investors during the pandemic

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Published

2021-07-07

How to Cite

Mohammad Elshqirat. (2021). PERFORMANCE OF ISLAMIC AND CONVENTIONAL EQUITY INDICES IN GCC COUNTRIES DURING COVID-19. PalArch’s Journal of Archaeology of Egypt / Egyptology, 18(08), 2627-2647. Retrieved from https://www.archives.palarch.nl/index.php/jae/article/view/9221