The use of time gaps distributed in determining the impact of the sukuk in stimulating the stock market - a case study of Malaysia -

Abstract

The Islamic stock market has a pivotal importance for its role in developing the economies of Islamic countries. The basis for dealing in it is with halal shares and Islamic bonds.

This study examined the impact of dealing in five different types of bonds on the activity of the Malaysia Stock market using a ARDL  during the period 2012-2019 monthly data.

The study concluded that there is a common co-integration between the study variables and a relation in the long run in the Malaysian experience. Dealing with long-term sukuk such as government housing sukuk had a significant positive impact on market, but the  short-term sukuk they had a significant impact but in the opposite direction which is in line with the rule of movement of funds from the short-term market to the long-term market.