The impact of COVID-19 on Islamic and conventional stocks in Indonesia: A wavelet-based study

Document Type

Article

Publication Date

1-1-2021

Abstract

The recent literature shows that COVID-19 has impacted stock markets around the world in many ways. In this paper, we examine the reaction of the Indonesian stock market to COVID-19. We apply the continuous wavelet coherence methodology to daily COVID-19 related deaths and daily conventional and Islamic stock indices in Indonesia. We find that COVID-19 negatively impacts the returns of both indices and enhances their volatility. We find the Islamic stock index to be more volatile as compared to its conventional counterpart during the COVID-19 outbreak. © 2021 Corporacion Colombiana de Investigacion Agropecuaria Corpoica. All rights reserved.

Keywords

COVID-19, Stocks, Indonesia

Publication Title

Buletin Ekonomi Moneter dan Perbankan

Volume

24

Publisher

Bank Indonesia

This document is currently not available here.

Share

COinS