Effect of covid-19 on Conventional and Islamic Stock Markets in Pakistan

Abstract

This study has focused mainly on investigating an association among COVID-19 pandemic, Islamic stock market performance, and conventional stock market performance in Pakistan. In this study, COVID-19 pandemic was considered as independent variable. However, Islamic and conventional stock market performance was considered a dependent variable. Present research used secondary sources of data (Pakistan Stock Exchange and official portal of Government of Pakistan) to perform present study for identifying association among study’s variables. A sample of first quarter of 2020 (119 days) was collected for assessing the relationship between study variable. Statistical tests (correlation and regression analysis) were then used for analyzing collected data with the help of STATA software. Correlation and regression analysis proved the significant negative relationship among COVID-19 pandemic (independent variable) and Islamic and conventional stock market performance (dependent variable) in Pakistan. Findings have concluded that performance of both Islamic stock market and conventional stock market have declined as a result of COVID-19 pandemic in Pakistan