HOW OJL PRICES, GOLD PRICES, EXCHANGE RATE AND UNCERTAINTY IMPACT ON ISLAMIC SUKUK INDEX PRICES

Abstract

Purpose The exhibition of Islamic bonds and outside and highlights the importance of this instrument or sukuk can be impacted by numerous elements, interior as investment point of view. This examination plans to analyze the long and short term impacts ofmacroeconomic factors, such as world oil prices, world gold prices, exchange rates (fluctuation dollar) policy uncertainty on the performance ofsukuk index for the duration of2011 to 2020. , economic Methodology & Design This examination utilized the co-integration test to look at the drawn out relationship among factors. Auto Regressive Distributed Lag (ARDL) bound testing strategy is utilized to discover long run affiliations. Augmented Dickey Fullers (ADF) test is pertained to recognize the unit root issue. Measurable adequacy of the predetermined models and assessed coefficients is checked by remaining diagnostic tests and steadiness indicative tests. Findings After effects of all predefined models uncover powerful long run connection among reliant and illustrative factors, and changes of short deviations from in the long haul. Sensitivity examination affirms that underlying results are perfect. This results indicate that the dollar fluctuation exchange has significant and positive impact on Islamic sukuk price index in the short and also the long run significant whereas change of oil prices, gold prices and dollar rates has significant impact on sukuk index in the short run. Economic policy uncertainty has not significant effect on sukuk prices both in the short and long term Limitations This research paper considered the time series from 2011 to 2020 to identify the effect of macroeconomics on Islamic sukuk price index. This time series were restricted from 2011 because of unavailability ofresearch data from several sources. Recommendations The outcome of this paper is significant for investor as this will provide a good image to portfolio managers with regard to Islamic market. The procedure with development and extension in the sukuk market has uplift the issue ofwhether these can anticipate the piece of mostly elective wellspring of financing and financing to regular bonds (conventional even a bonds)