Market reactions towards the announcement of sukuk issuance: evidence from Malaysian market / Muzrifah Mohamed, Norliza Che Yahya and Nur Ashikin Ishak

One of the unique features of Malaysian financial market is the co-existence of Islamic bonds market or better known as sukuk market and the conventional bonds. Unlike conventional bonds, the Islamic bonds are structured to comply with Shariah principles, which prohibits the charging of riba' o...

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Main Authors:	Mohamed, Muzrifah, Che Yahya, Norliza, Ishak, Nur Ashikin
Format:	Research Reports
Language:	English
Published:	Research Management Institute (RMI) 2017
Subjects:	Finance, Islamic
Online Access:	http://ir.uitm.edu.my/id/eprint/26251/ http://ir.uitm.edu.my/id/eprint/26251/1/LP_MUZRIFAH%20MOHAMED%20RMI%2017_5.pdf

id	uitm-26251
recordtype	eprints
spelling	uitm-262512019-10-23T08:46:06Z http://ir.uitm.edu.my/id/eprint/26251/ Market reactions towards the announcement of sukuk issuance: evidence from Malaysian market / Muzrifah Mohamed, Norliza Che Yahya and Nur Ashikin Ishak Mohamed, Muzrifah Che Yahya, Norliza Ishak, Nur Ashikin Finance, Islamic One of the unique features of Malaysian financial market is the co-existence of Islamic bonds market or better known as sukuk market and the conventional bonds. Unlike conventional bonds, the Islamic bonds are structured to comply with Shariah principles, which prohibits the charging of riba' or interest. The history of sukuk market records Malaysia as one of the pioneering countries of Islamic bond products when it kicks off the global sukuk arena with the issuance of Shell MDS Sdn Bhd in 1990 ("Bloomberg Businessweek," 2013). The issuance of Shell MDS Sdn Bhd has been the spectator of the unprecedented proliferation for sukuk issuance especially after the global financial crisis in 2007-2008. The global financial crisis has alerted investors on the significance of other investment alternatives as a means to diversify and minimise the risk of their investment portfolio. To totally be dependent on the equity market might limit the investors' chance to optimise their portfolio return particularly during the economic downturn; sukuk is viewed as one of the best alternatives for risk diversification strategy. To date, sukuk is reported as the most active Islamic financial instrument issued in debt market and an important avenue for fundraising mechanism for companies and also as investment activities for investors. As depicted in Figure 1, even though the total number of global sukuk issuance experienced a temporary drop in the year 2008, it regained its momentum in 2009. The consistent growth of its size issued from year to year indicates that the global sukuk market is gradually developing. In other words, the debt market participants (e.g. firms and investors) have begun to recognise the significance of sukuk as an alternative investment channel. Further on the statistic, despite a decline in the total amount of sukuk issuance in 2008, Malaysia is still positioned as the largest sukuk market in the world during and after the financial crisis (Bank Negara Malaysia and Securities Malaysia, 2009). Research Management Institute (RMI) 2017 Research Reports NonPeerReviewed text en http://ir.uitm.edu.my/id/eprint/26251/1/LP_MUZRIFAH%20MOHAMED%20RMI%2017_5.pdf Mohamed, Muzrifah and Che Yahya, Norliza and Ishak, Nur Ashikin (2017) Market reactions towards the announcement of sukuk issuance: evidence from Malaysian market / Muzrifah Mohamed, Norliza Che Yahya and Nur Ashikin Ishak. [Research Reports] (Unpublished)
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Teknologi MARA
building	UiTM Institutional Repository
collection	Online Access
language	English
topic	Finance, Islamic
spellingShingle	Finance, Islamic Mohamed, Muzrifah Che Yahya, Norliza Ishak, Nur Ashikin Market reactions towards the announcement of sukuk issuance: evidence from Malaysian market / Muzrifah Mohamed, Norliza Che Yahya and Nur Ashikin Ishak
description	One of the unique features of Malaysian financial market is the co-existence of Islamic bonds market or better known as sukuk market and the conventional bonds. Unlike conventional bonds, the Islamic bonds are structured to comply with Shariah principles, which prohibits the charging of riba' or interest. The history of sukuk market records Malaysia as one of the pioneering countries of Islamic bond products when it kicks off the global sukuk arena with the issuance of Shell MDS Sdn Bhd in 1990 ("Bloomberg Businessweek," 2013). The issuance of Shell MDS Sdn Bhd has been the spectator of the unprecedented proliferation for sukuk issuance especially after the global financial crisis in 2007-2008. The global financial crisis has alerted investors on the significance of other investment alternatives as a means to diversify and minimise the risk of their investment portfolio. To totally be dependent on the equity market might limit the investors' chance to optimise their portfolio return particularly during the economic downturn; sukuk is viewed as one of the best alternatives for risk diversification strategy. To date, sukuk is reported as the most active Islamic financial instrument issued in debt market and an important avenue for fundraising mechanism for companies and also as investment activities for investors. As depicted in Figure 1, even though the total number of global sukuk issuance experienced a temporary drop in the year 2008, it regained its momentum in 2009. The consistent growth of its size issued from year to year indicates that the global sukuk market is gradually developing. In other words, the debt market participants (e.g. firms and investors) have begun to recognise the significance of sukuk as an alternative investment channel. Further on the statistic, despite a decline in the total amount of sukuk issuance in 2008, Malaysia is still positioned as the largest sukuk market in the world during and after the financial crisis (Bank Negara Malaysia and Securities Malaysia, 2009).
format	Research Reports
author	Mohamed, Muzrifah Che Yahya, Norliza Ishak, Nur Ashikin
author_facet	Mohamed, Muzrifah Che Yahya, Norliza Ishak, Nur Ashikin
author_sort	Mohamed, Muzrifah
title	Market reactions towards the announcement of sukuk issuance: evidence from Malaysian market / Muzrifah Mohamed, Norliza Che Yahya and Nur Ashikin Ishak
title_short	Market reactions towards the announcement of sukuk issuance: evidence from Malaysian market / Muzrifah Mohamed, Norliza Che Yahya and Nur Ashikin Ishak
title_full	Market reactions towards the announcement of sukuk issuance: evidence from Malaysian market / Muzrifah Mohamed, Norliza Che Yahya and Nur Ashikin Ishak
title_fullStr	Market reactions towards the announcement of sukuk issuance: evidence from Malaysian market / Muzrifah Mohamed, Norliza Che Yahya and Nur Ashikin Ishak
title_full_unstemmed	Market reactions towards the announcement of sukuk issuance: evidence from Malaysian market / Muzrifah Mohamed, Norliza Che Yahya and Nur Ashikin Ishak
title_sort	market reactions towards the announcement of sukuk issuance: evidence from malaysian market / muzrifah mohamed, norliza che yahya and nur ashikin ishak
publisher	Research Management Institute (RMI)
publishDate	2017
url	http://ir.uitm.edu.my/id/eprint/26251/ http://ir.uitm.edu.my/id/eprint/26251/1/LP_MUZRIFAH%20MOHAMED%20RMI%2017_5.pdf
first_indexed	2023-09-18T23:16:30Z
last_indexed	2023-09-18T23:16:30Z
_version_	1777419147425087488

Market reactions towards the announcement of sukuk issuance: evidence from Malaysian market / Muzrifah Mohamed, Norliza Che Yahya and Nur Ashikin Ishak

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