Macroeconomics Effect on Conventional and Sharia Stocks During the Covid-19 Pandemic

Abstract

This study aims to analyze the effect of macroeconomics on conventional and sharia stocks during the COVID-19 pandemic. The data collected for this study was obtained from monthly stock index data on the Indonesia Stock Exchange (IDX) as well as macroeconomic development reports from the Ministry of National Development Planning/Bappenas. The population in this study are all conventional and sharia stocks listed on the IDX. The sampling technique was carried out using a purposive sampling method with the criteria of conventional and sharia stocks listed on the IDX for the period March 2020 to June 2021. The macro variables used in researching the Jakarta Composite Index (JCI) and the Jakarta Islamic Index (JII) consisted of four variables, which are exports, imports, inflation rate, and foreign exchange reserves. The data analysis technique used in this research is multivariate multiple linear regression analysis accompanied by simultaneous and partial testing to determine the predictor variables that affect JCI and JII. The results shows that exports and foreign exchange reserves had a significant positive effect on JCI and JII, while imports and the inflation rate did not have a significant effect. The goodness of the model is 93%.

The US-China Trade War in Macroeconomic Studies of the Indonesian Sharia Stock Index

“…Conversely, imports have a negative impact on ISSI, in line with the Random Walk theory, which posits that future stock price movements are independent of current prices. The empirical study conducted by Halisa and Annisa (2022) also supports these findings, reporting a negative effect.…”

“…The Influence of Exports on ISSI Export is a part of the international trade process by sending goods originating from within the country to abroad with the terms and conditions that have been determined. Halisa and Annisa (2022) said that exports can increase the country's foreign exchange and also the stability of national economic growth. If economic growth is stable, it will attract investors to invest in the country and will increase investor confidence.…”

“…Then for the world oil price researched by Darmawan and Saiful Haq (2022), Kasongwa and Minja (2022), Bhama (2022), Winny and Yulfiswandi (2022), Panda et al (2023), Budhidharma et al (2022), Candy and Winardy (2019) and Mawarni and Widiasmara (2018). Meanwhile, empirical studies for exports and imports of stock indices have been carried out by Halisa and Annisa (2022), Maran et al (2022), Hussain et al (2012) and Zhu (2012). Overall research results differ from one another in terms of the interplay among these above-mentioned variables.…”