The Relationship Between Islamic Indices and Conventional Indices in Capital Markets: Participation 30 Index and Bist 100 Index

The aim of the study is to investigate the existence of short term and long term relationships between Islamic indices and traditional indices in capital markets. The relationship between logarithmic values of Participation 30 Index and Bist 100 Index has been analyzed through E-Views 8 Program for the working days of the years of 2013- 2018. While Participation 30 Index represents the shares of 30 companies operating in accordance with Islamic principles, Bist 100 Index informs about the general situation of the market in Turkey. Unit root test, cointegration test and causality test were applied in the study and the results were interpreted with the error correction model. As a result of the study, both short-term and long-term relationships were determined between the Participation 30 Index and Bist 100 Index. According to findings, there is a one way causality relation and this relation’s direction is from the Participation 30 Index to Bist 100 Index. The study is important in terms of examining the Turkish Islamic capital market and comparing the results with global markets