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

12 Citations (Scopus)
103 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
Number of pages8
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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