Shifting Sands: Evaluating the Influence of Macroeconomic Forces, Commodity Fluctuations, and COVID-19 on the FTSE Bursa Malaysia Hijrah Shariah Index

Abstract

The COVID-19 epidemic has caused tremendous instability in the global financial ecosystem, impacting macroeconomic indicators and commodity prices as well as stock markets worldwide. The objective of this study is to quantify the impact of these factors on the FTSE Bursa Malaysia Hijrah Shariah Index, a key indicator of the performance of the Islamic finance market in Malaysia. This study uses a methodological approach that combines documentary and archival analysis to examine the relationship between the index and numerous economic parameters such as interest rates, exchange rates, gold and oil prices as well as COVID-19 case numbers from January 25, 2020 to December 1, 2021. The data was obtained from credible sources such as Investing.com, Central Bank of Malaysia and Our World in Data and analyzed using SPSS statistical software. This study adds to the current literature by specifically examining the FTSE Bursa Malaysia Hijrah Shariah Index during a crisis and provides useful insights for investors, policymakers, and academics. It highlights the vulnerability of the index to certain macroeconomic and health-related events and identifies opportunities for further research on the resilience and adaptation of Islamic finance.