Diversification of the Islamic stock market, Bitcoin, and Bullions in response to the Russia-Ukraine conflict and the COVID-19 outbreak

Ashraf, Sumaira; de Almeida, António Manuel Martins; Naz, Iram; Latief, Rashid

doi:10.1016/j.heliyon.2023.e19023

Cited by 4 publications

(1 citation statement)

References 65 publications

(86 reference statements)

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“…At first, the COVID-19 pandemic had no impact on the stock market despite spreading quickly over the world. However, the market began to respond unfavorably to the sharp rise in mortality (Ashraf et al 2023;Hsiao and Chiu 2024;Khan et al 2023). A decrease in stock market values was also brought on by the coronavirus, particularly after the World Health Organization (WHO) declared a pandemic, which resulted in unfavorable abnormal returns in the market (AlAli 2020; Al-Qudah and Houcine 2022; Liu et al 2020).…”

Section: Introductionmentioning

confidence: 99%

Exploring the Resilience of Islamic Stock in Indonesia and Asian Markets

Nofrianto,

Nugraha,

Ahmed

et al. 2024

JRFM

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This study aims to investigate the relationship between returns and risk of Islamic stock under stable economic conditions, crises, and pandemics within the scope of Indonesian and Asian Islamic capital markets. How do economic conditions affect the risks and returns of investors in the Indonesian and Asian Islamic capital markets? Verification of the veracity of the Islamic capital market serves as a more resilient option for alternative investments. This study uses Granger causality to determine exogenous and endogenous variables when building the model. The model that is formed is then analyzed using regression with dummy variables of stable economic conditions, crises, and pandemics. The first research findings on differences in crisis, stable and pandemic times in the Asian stock market show that there is no significant difference in effect between stable times and during a crisis, but there are differences in the effect during stable and pandemic times. The second research finding states that the return on Asian market Shariah stocks has no influence on increasing or reducing the value of risk or value at risk. The third finding explains that Islamic stocks in Indonesia have a greater risk value during pandemics and crises than in stable times, but the effect of pandemic and crisis conditions is not as great as Islamic stocks in Asia as a whole. In order to stabilize markets and reduce risks, regulatory bodies and governments frequently employ a variety of actions during times of crisis. When applied to trading volume, risk, and return patterns, these findings can help determine the appropriate policy.

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Section: Introductionmentioning

confidence: 99%

Exploring the Resilience of Islamic Stock in Indonesia and Asian Markets

Nofrianto,

Nugraha,

Ahmed

et al. 2024

JRFM

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Spillover Connectedness Between Cryptocurrency and Energy Sector: An Empirical Investigation Under Asymmetric Exogenous Shocks of Health and Geopolitical Crisis and Uncertainties

Gherghina,

Armeanu,

Andrei

et al. 2024

J Knowl Econ

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Comparing the Performance of Developed and Emerging Market Equities during Economic Downturns

Kazmi,

Ali

2023

JAFEE

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Purpose: This study compares developed and developing market stocks during the Russia-Ukraine crisis, a time of high geopolitical tensions. Economic downturns are complicated by geopolitical, financial, and natural disasters. A relevant case study to analyze equities market divergence under geopolitical uncertainty. Design/Methodology/Approach: This research quantifies stock market indexes, daily returns, and volatility indicators using historical financial data. Performance indicators, volatility patterns, and risk-return characteristics are compared across established and developing market stocks. The analysis seeks to determine if geopolitical tensions during the war increased market volatility and to understand market segment reactions. The analysis uses cumulative returns, average returns, standard deviations, volatility indexes, and the Sharpe ratio. Findings: It is found that clear geopolitical tensions during the crisis affected market volatility differently in established and new economies. This is because industrialized economies are financially stronger than developing ones. The Sharpe ratio allowed detailed market sector comparisons of risk-adjusted returns. This comparison showed investors' possible trade-offs between rewards and dangers. Implications/Originality/Value: These findings affect investors seeking educated strategies, politicians creating effective actions, and market participants managing risks. This research improves decision-making and risk management amid economic volatility by evaluating geopolitical events and stock market behaviors.

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Diversification of the Islamic stock market, Bitcoin, and Bullions in response to the Russia-Ukraine conflict and the COVID-19 outbreak

Cited by 4 publications

References 65 publications

Exploring the Resilience of Islamic Stock in Indonesia and Asian Markets

Exploring the Resilience of Islamic Stock in Indonesia and Asian Markets

Spillover Connectedness Between Cryptocurrency and Energy Sector: An Empirical Investigation Under Asymmetric Exogenous Shocks of Health and Geopolitical Crisis and Uncertainties

Comparing the Performance of Developed and Emerging Market Equities during Economic Downturns

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