• The Journal of Asian Finance, Economics and Business
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• v.8 no.5
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• pp.515-521
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• 2021

The popularity of Islamic financial instruments among Muslims is not surprising. The Islamic capital market is where sharia-compliant financial assets are transacted. It works parallel to the conventional market and helps investors find sharia-compliant investment opportunities. At a time of collective confusion when the COVID-19 epidemic is contributing to unprecedented change, this paper is keen to understand how attractive conventional and Islamic stock markets have been to investors recently. Second, this paper takes advantage of the time-scale decomposition property of the wavelet to simultaneously capture risk exposure and distinguish the risks faced by short- and long-term investors. To this end, this research conducted a two-step investigation of the daily closing equity market price indices for three Islamic stock markets and their conventional counterparts. Given that different financial decisions occur with greater or less frequency, the paper examines the connectedness of stock markets operating at heterogeneous rates and identifies the timescales using wavelet-DCC-GARCH analysis to take account of both the time and the frequency domains of stock market connectedness. The paper findings highlight the strong evidence of contagion that can be seen in nearly all conventional stock markets in the COVID-19 pandemic; they reach a high level of dependency in such health crises. Furthermore, Islamic stock markets prove to be a rich ground for global diversification.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.7
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• pp.383-391
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• 2021

This study examines the connectedness between the number of COVID-19 cases in Thailand and trading value among investors in the Stock Exchange of Thailand. Daily data of COVID-19 cases and trading value were sourced from the Thailand ministry of public health and the Stock Exchange of Thailand, from January 12, 2020 to May 11, 2021. This study applies a multiple linear regression analysis to explain the relationship between variables. Empirical evidence clearly shows that the volatility of trading value was affected by COVID-19's new, confirmed, and deaths cases within the first pandemic period more than during the second pandemic period. Nevertheless, during the third pandemic period there is no evidence that the new, confirmed, and deaths cases significantly influenced trading value. Furthermore, the results show that COVID-19's new and deaths cases have a negative coefficient that indicated the trading value-buy/sell decreased in response to COVID-19's new and deaths cases, whereas the confirmed COVID-19 cases have a positive coefficient that indicated the trading value-buy/sell increased in response to COVID's confirmed cases. In summary, this study suggests that the number of COVID-19 cases have a significant impact on the trading value in the short term more than in the intermediate and long term.