Özet:

Following the announcement of COVID-19 as a pandemic in March 2020, great losses were experienced in financial markets all over the World. The aim of this study is to evaluate the performances and volatility of Islamic and traditional markets. For this purpose, nine Islamic and nine traditional indices were selected from nine different countries/regions. The scope of the study extends from January 1, 2018 to December 1, 2021. This period is divided into two parts as post and pre-COVID-19, based on January 30, 2020 on which the World Health Organization (WHO) declared COVID-19 as a health crisis of international importance. The general evaluation of the two index groups in terms of return and risk was made according to the mean and standard deviation values from descriptive statistics. The Generalized Autoregressive Conditional Variance (GARCH) model was used for the volatility analysis. The average rate of returns of Islamic indices were above the returns of traditional indices both before and after January 30, 2020 periods. The volatility of returns in both types of indexes increased after the announcement of COVID-19 as a “Public Health Emergency of International Concern” by WHO on January 30th, 2020. Islamic index volatility before January 30th, 2020 was lower than the traditional indexes. This difference disappeared after January 30th, 2020 and the volatility persistence seems to be equalized at a higher level for both types of indexes.

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