ISSN: 2222-6990
Open access
Changes in investors’ confidence may trigger changes in asset prices. Investor sentiment may be an essential factor in the market pricing process to explain changes in the stock market index. The purpose of this study is to look into the confidence effects on Sukuk investors in Malaysia following the COVID-19 pandemic using the impact of the global financial crisis of 2007/2008 as a reference. The confidence effect will be measured using an Equity Market Sentiment Index (EMSI). This study focuses on FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBMKLCI), FTSE Bursa Malaysia Emas Shariah Index (FBM EMAS), FTSE Bursa Malaysia Hijrah Shariah Index (FBM HIJRAH), and Dow Jones Islamic Market (DJIM). The sources of data include Datastream, Bloomberg database, Securities Commission Malaysia, and Bursa Malaysia. The investors’ confidence to issue Sukuk increased after the crisis. The investors’ behaviour showed that they avoided risks in their portfolio, but they tend to seek chances when they are confident. Therefore, intelligent investors are those who accept higher risks with higher returns. Concerning the objective, Sukuk investors did not display high risk-seeking behaviour before the 2008 crisis. The Sukuk investors during the COVID-19 pandemic have also referred to this situation of the 2008 global financial crisis to seek chances and confidence to issue and invest in Islamic bonds, where there are higher risks with higher returns. This analysis provides valuable information and guidelines to issuers, policymakers, regulatory bodies, and investors, both Muslim and non-Muslim, and can draw them to Islamic bonds, Sukuk.
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In-Text Citation: (Rahim & Othman, 2021)
To Cite this Article: Rahim, S. A., & Othman, N. H. (2021). Sukuk Investors’ Confidence Following The 2008-Crisis: A Perspective From Maqasid Shariah For The Covid-19 Pandemic. International Journal of Academic Research in Business and Social Sciences, 11(8), 352–374.
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