Islamic stock indices and traditional safe-haven assets: evidence from Covid-19 and global financial crises

Student Name

Wadood Alam MazariFollow

Degree

Master of Science in Islamic Banking & Finance

Department

Department of Finance

Faculty/ School

Faculty of Business Administration (FBA)

Date of Submission

Fall 2021

Supervisor

Dr. Ashraf Khan, Assistant Professor, Department of Finance, Institute of Business Administration, Karachi Pakistan

Co-Supervisor

Dr. Mohsin Sadaqat, Co-supervisor, Department of Finance, Institute of Business Administration, Karachi Pakistan

Keywords

Gold, Oil, Islamic equity, Financial crisis, Covid-19

Abstract

This study analyzes the performance of safe haven assets (gold and oil) whether they can be used as hedge against Islamic Equity Indices. The study assessed the performance in the times of the Global Financial Crises 2008 and COVID-19 Pandemic. Our analysis of safe haven assets against seven Islamic equity indices shows that both gold and oil partially performed as hedge during GFC but not in COVID-19. The result of gold was contrary to earlier held belief that it acts as hedge during stressful time. Apparently, investors have lost trust in gold. It is suggested that investors may consider other assets for investment hedging and diversification.

Document Type

Restricted Access

Recommended Citation

Mazari, W. A. (2021). Islamic stock indices and traditional safe-haven assets: evidence from Covid-19 and global financial crises (Unpublished graduate research project). Institute of Business Administration, Pakistan. Retrieved from https://ir.iba.edu.pk/etd-ms-ibf/5