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Islamic Stock Indices and COVID-19: Evidence from Indonesia

Author

Listed:
  • Selamet Herman Cipto

    (Tazkia Islamic University College, Bogor, Indonesia)

  • Endri Endri

    (Universitas Mercu Buana, Jakarta, Indonesia)

  • Yono Haryono

    (Tazkia Islamic University College, Bogor, Indonesia)

  • Dhanang Hartanto

    (Universitas Mercu Buana, Jakarta, Indonesia)

Abstract

The COVID-19 pandemic has paralyzed the economy, affected human health, and claimed human lives in the world. This deadly virus is rapidly affecting every aspect of life in all countries. Almost every area of ​​life, from economics to politics, society to culture, has been affected by the COVID-19 pandemic; of course, this impact cannot be separated from the Sharia stocks sub-sector in Indonesia. This study aims to analyze and test the effects of COVID-19 on the response of Islamic stocks. Moreover, to see the difference between the Jakarta Islamic Index (JII) sharia stocks and the Composite Stock Price Index (IHSG) in observations before COVID-19 and after COVID-19. This event study research aims to see the differences between the Jakarta Islamic Index (JII) sharia stocks and the Jakarta Composite Index (IHSG) in observations before COVID-19 and observations after COVID-19. The data used in this study is secondary data already available and obtained from the Indonesia Stock Exchange (IDX). The results of this study show a significant influence on stock prices before and after the announcement of COVID-19 in Indonesia on the Jakarta Islamic Index (JII). There is no significant effect on stock returns before and after the announcement of COVID-19 in Indonesia on the Jakarta Islamic Index (JII). There is no significant effect on abnormal returns before and after the announcement of COVID-19 in Indonesia on the Jakarta Islamic Index (JII). There was a significant influence on stock trading volume before and after the announcement of COVID-19 in Indonesia on the Jakarta Islamic Index (JII).

Suggested Citation

  • Selamet Herman Cipto & Endri Endri & Yono Haryono & Dhanang Hartanto, 2024. "Islamic Stock Indices and COVID-19: Evidence from Indonesia," International Journal of Economics and Financial Issues, Econjournals, vol. 14(3), pages 83-88, May.
    • Handle: RePEc:eco:journ1:2024-03-10
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    References listed on IDEAS

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    More about this item

    Keywords

    Stock Response; Sharia Stocks; COVID-19; Event Study;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors

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