A note on COVID-19 instigated maximum drawdown in Islamic markets versus conventional counterparts

M. Kabir Hassan, Md Iftekhar Hasan Chowdhury, Faruk Balli, Rashedul Hasan

Research output: Contribution to journalArticlepeer-review

11 Citations (Scopus)
80 Downloads (Pure)


This study uncovers the impact of the COVID-19 on the Islamic equity markets compared to their conventional counterparts. The extremely large-scale drawdown across the markets signifies an indiscriminate impact. To some extent, Asian Islamic markets show relative resilience to their counterparts. Both Islamic and non-Islamic Asian markets signpost a quicker recovery than the rest of the regions, the Middle East & Africa, Europe, and America. It appears that a higher return leads to a smaller maximum drawdown, while higher volatility leads to a larger maximum drawdown. Despite the large-scale drawdown, a number of markets secure a positive return where Islamic markets outperform the counterparts. Conventional markets respond to the COVID-19 aftershock homogenously as a result of their high interlinkages. Collectively, these results reinforce the view that in the crisis period, Islamic markets are more resilient.

Original languageEnglish
Article number102426
JournalFinance Research Letters
Issue numberPart B
Early online date2 Sept 2021
Publication statusPublished - May 2022

Bibliographical note

Publisher Copyright:
© 2021 Elsevier Inc.


  • COVID-19
  • Islamic equity market
  • Maximum drawdown

ASJC Scopus subject areas

  • Finance


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