TESTING THE IMPACT OF MAJOR EVENTS ON CONVENTIONAL AND ISLAMIC STOCK INDICES OF G7 AND GCC

Authors

  • Dr. Abdul Basit Sohail Istanbul Sabahattin Zaim University, Türkiye Author
  • Prof. Dr. Turan Erol Istanbul Sabahattin Zaim University, Türkiye Author

DOI:

https://doi.org/10.63740/8fa4wh36

Keywords:

COVID, Glasgow Climate Pact, Ukraine War, Event Study, Diversification , ChatGPT Launch

Abstract

The research intends to investigate the impact of COVID, Glasgow Climate Pact, Ukraine War and ChatGPT Launch on the conventional and Islamic stock indices of G7 and GCC countries. The researcher employed the event study methodology to analyze the impact of the four events and used DCC-MGARCH for diversification analysis irrespective of these events. Results depict that Overall G7 markets were negative before declaring COVID as a global pandemic. Mostly GCC indices were stable to COVID. Overall G7 markets were negative to the Glasgow Climate Pact. Mostly GCC indices were stable to the GCP. G7 were mostly negative to Ukraine War. Overall GCC was stable to Ukraine war. Mostly G7 and GCC were negative to the ChatGPT launch. Dynamic Conditional Correlation is moderate among G7 Islamic and Conventional stock indices indicating moderate level of diversification. DCC among GCC Islamic and Conventional is less than 0.2 and offers more diversification. Investors can diversify their portfolio among G7 and GCC stock indices for better return with less risk.

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Published

31-12-2025

Issue

Vol. 2 No. 1 (2025): Volume 2, Issue 1 – December 2025

Section

Research Articles

License

Copyright (c) 2026 Dr. Abdul Basit Sohail, Prof. Dr. Turan Erol (Author)

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