We empirically explore the effect of the COVID-19 pandemic on Islamic and conventional stock markets from a global perspective. We also explore the co-movement between Islamic and conventional stock markets. Two comparable pairs of conventional and Islamic stock indices – Dow Jones Index and FTSE Index are considered in this study. Employing Wavelet-based multi-timescales techniques on the daily data from 21st January to 27th November 2020, our findings indicate that the pandemic creates identical volatility in both stock markets. Our findings further suggest that both markets are strongly associated and tend to co-move highly during our sample period, rebutting the decoupling hypothesis of the Islamic stock market from the conventional market. However, the Shariah screening process fails to provide immunity to Islamic stock markets against financial crises. Our findings suggest that investors should be aware that Islamic stocks' conservative features do not present a superior investment alternative, especially in economic turmoil.

我们从全球角度实证探讨了 COVID-19 大流行对伊斯兰和传统股票市场的影响。我们还探讨了伊斯兰股票市场和传统股票市场之间的联动。本研究考虑了两个可比较的传统和伊斯兰股票指数——道琼斯指数和富时指数。对 2020 年 1 月 21 日至 11 月 27 日的每日数据采用基于小波的多时间尺度技术，我们的研究结果表明，大流行在两个股市中造成了相同的波动。我们的研究结果进一步表明，在我们的样本期间，这两个市场密切相关，并且往往高度联动，反驳了伊斯兰股票市场与传统市场脱钩的假设。然而，伊斯兰教法筛选程序未能使伊斯兰股票市场免受金融危机的影响。我们的研究结果表明，投资者应该意识到伊斯兰股票的保守特征并不是一种优越的投资选择，尤其是在经济动荡时期。