The effect of NIKKEI and crude oil on market indices during COVID-19 in Indonesia

Abstract

Several world economic indicators that are interrelated and affected by the COVID-19 pandemic are IHSG, NIKKEI, and the world oil price. The sample of this study is taken from 9 June 2020 to 7 June 2021 in objective to analyze the impact of oil price and NIKKEI on IHSG. This study finds that increasing in oil prices and the NIKKEI have significant positive impact on the IHSG on the Indonesia Stock Exchange. This study indicates that the COVID-19 pandemic does not always result for negative impact on world economy. Moreover, the movement of the market index tends to be responded positively by investors which indicate optimism about economic growth in Indonesia.

Hubungan harga minyak dunia dan indeks pasar Indonesia selama isu geopolitik

“…Gambar 1 memberikan gambaran kondisi pengembalian indeks pasar di Indonesia serta fluktuasi harga minyak bumi dunia periode 1 Januari 2023 hingga 30 April 2023. Tanod et al (2022), Ari et al (2023), dan Pagora et al (2023) menunjukkan bahwa perubahan atas harga minyak bumi dunia berpengaruh secara signifikan terhadap indeks pasar modal di Indonesia. Tujuan studi ini adalah untuk mengetahui bagaimana hubungan harga minyak dunia terhadap indeks pasar di Indonesia selama isu geopolitik global.…”

“…Berdasarkan hasil uji maka studi ini menolak H1 yang konsisten dengan Fadah et al (2017), Anggriana dan Paramita (2020), Dewi (2020), Kaligis dan Soejono (2020), dan Zuhri (2022). Sebaliknya, hasil studi ini tidak konsisten dengan Firmansyah et al (2022), Salim et al (2018), Basit (2020), Tanod et al (2022), Ari et al (2023), Pagora et al (2023)…”

The return response on gold and crude oil during global geopolitical issues

“…Since the start of the COVID-19 pandemic in 2020, market conditions in Indonesia have become unstable, including obtaining returns by investors (Novilia et al, 2022). Gerung et al (2022), Tanod et al (2022), and Pagora et al (2023) report that one of the triggers for the instability of the capital market since the pandemic is commodities. Commodities are products or goods that can be exchanged for profit or other goods of equal value.…”

The relationship between oil prices and energy sector stocks in the global recession issue

“…Empirically, Antonius (2019) finds that increasing oil prices will have a varied impact on the market index for each type of industry. However, Pagora et al (2023) report that increases in oil prices tend to be followed by increases in the market index. Specifically, Tanod et al ( 2022) and Ari et al (2023) find that an increase in world oil prices tends to be followed by an increase in the market index for the energy sector.…”