Title: Performance of sectoral Islamic indices during COVID-19

Authors: Muhammad Saeed Meo; Farah Durani; Sajid Ali; Alade Ayodeji Ademokoya; Raima Nazar; Syed Ali Raza

Addresses: Department of Management Sciences, Superior University, Lahore, Pakistan; Lab for Gas, Technology and Sustainable Development, RUDN University, Moscow, Russia ' Department of Finance, College of Business Administration, University of Business and Technology, Jeddah 21448, Kingdom of Saudi Arabia ' School of Economics, Bahauddin Zakariya University, Multan, Pakistan ' Department of Accounting and Finance, Kwara State University, PMB 1530, Ilorin, Kwara State, Nigeria ' Department of Economics, The Women University, Multan, Pakistan ' Department of Business Administration, IQRA University, Karachi 75300, Pakistan

Abstract: This study examines the impact of oil prices, world uncertainty and pandemic uncertainty on sectoral Islamic stocks (financial, healthcare, industrial, oil and gas, the technology sector, the telecommunications sector and the utility sector). This study employs quantile-on-quantile regression and wavelet-based Granger causality ranging from 1996Q1 to 2020Q4. The findings of the study confirm the overall negative effect of world oil prices, world uncertainty and the world pandemic uncertainty index on all the sectoral Islamic indices except the technology and telecommunication sectors. We find that world oil prices, world uncertainty and the world pandemic uncertainty index positively affect the technology and telecommunications sectors. However, the relationship between the proposed variables varies over the quantiles, depicting the heterogeneous response of financial markets due to various states of the economy. This study has policy implications related to sectoral Islamic indices; policies should be based on the sectoral performance of Islamic indices rather than the overall index because of the heterogeneous performance of various sectors.

Keywords: COVID-19 pandemic; oil prices; world pandemic uncertainty; world uncertainty; sectoral indices.

DOI: 10.1504/IJTGM.2022.128352

International Journal of Trade and Global Markets, 2022 Vol.16 No.4, pp.301 - 326

Received: 07 Jan 2021
Accepted: 25 May 2021
Published online: 18 Jan 2023 *

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