How do sectoral Islamic equity markets react to geopolitical risk, economic policy uncertainty, and oil price shocks؟
This study examines how three major risk and uncertainty indices—Geopolitical Risk (GPR), Economic Policy Uncertainty (EPU), and Oil Market Volatility (OVX)—affect the Dow Jones Islamic Market (DJIM) World and ten key Islamic sectoral equity indices. The results reveal that Islamic equities generally hedge better against GPR and EPU shocks than against OVX shocks. GPR shows a strong positive correlation with DJIM and most sectors, especially consumer goods, oil & gas, and financials. EPU hedging benefits appear mainly during market downturns, with basic materials and oil & gas outperforming others in resilience. However, none of the Islamic indices show resilience to oil market volatility. These insights have important implications for risk management and policy decisions.
This study examines how three major risk and uncertainty indices—Geopolitical Risk (GPR), Economic Policy Uncertainty (EPU), and Oil Market Volatility (OVX)—affect the Dow Jones Islamic Market (…
The relation between corporate social performance (CSP) and corporate financial performance (CFP) has been extensively researched. In this paper, we extend this research into the Saudi market by…