The impact of inflation on growth of market index

Kanan, Fenilisia; Nahading, Jumnibianti

doi:10.58784/cfabr.27

Cited by 7 publications

(1 citation statement)

References 11 publications

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“…Pasar modal Indonesia merupakan salah satu pasar terbesar di Asia dan telah melewati berbagai kejadian ekonomi. Bukti empiris menunjukkan bahwa beberapa kejadian ekonomi yang cenderung mempengaruhi kondisi pasar Indonesia adalah suku bunga, inflasi, dan nilai tukar (Ahmad & Badri, 2022;Pradita & Fidyah, 2022;Kanan & Nahading, 2023;Ardian et al, 2024). Pada awal 2020, pasar Indonesia sempat mengalami kondisi terburuk akibat pandemi COVID-19 sehingga indeks saham mengalami depresiasi nilai yang cukup signifikan.…”

Section: Pendahuluanunclassified

Efisiensi pasar dan mean-reversion di Indonesia

Sari,

Maradesa,

Budiarso

2024

MBKK

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The Indonesian capital market is one of the markets in Asia that has the potential to be influenced by various economic and other global issues. This study aims to examine market conditions in Indonesia in the context of the weak form efficient market hypothesis. The sample used is the rate of return from the composite index in Indonesia with an observation period from 2010 to 2023. This study finds that the average value throughout the observation period is quite small and almost close to zero although it has an optimum return. In further analysis, the finding shows that the market in Indonesia is consistent with the weak form efficient market hypothesis with a mean-reversion tendency.

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Section: Pendahuluanunclassified

Efisiensi pasar dan mean-reversion di Indonesia

Sari,

Maradesa,

Budiarso

2024

MBKK

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Pengembalian saham sektor perbankan dalam isu inflasi dan suku bunga

Rombang,

Sigandong

2023

MBKK

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Information on changes in inflation and interest rates is one of the issues that tend to influence investment decisions in the Indonesian capital market. This study observes from 1 February 2023 to 30 April 2023 at 47 firms in the banking sector. This study finds that the performance of stock returns on risk from the banking sector as a whole has not reached an optimal level. Specifically, the evidence also shows that there is a tendency for returns to decline from February to April 2023 as the inflation rate declines. The findings of this study also imply that a decrease in returns also occurs at a fixed interest rate. In addition, this study also finds that even though there is a decrease in returns but the difference of the value between periods are insignificant.

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Kondisi pasar Indonesia dalam isu inflasi nasional dan geopolitik global

Luntungan

2024

RAMP

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In early 2022, changes in the inflation rate accompanied by global geopolitical issues became crucial information for the Indonesian capital market. At that time, inflation conditions in Indonesia began to creep up to reach a point of around 2%. This study aims to examine the market return performance of the LQ45 Index in the context of changes in the inflation rate and global geopolitical issues. Observations are carried out in 2 sub-periods: (1) 6 October 2021 to 30 December 2021 or the period with low inflation; and (2) January 3 2022 to March 31 2022 or a period with a high inflation rate. The findings of this study show that the highest market returns with low risk are in periods of high inflation and accompanied by global geopolitical issues. This period also produces a better risk-return trade-off. Other findings indicate that the market in both periods did not produce extraordinary returns even though it was in a weak form of inefficiency. Changes in the inflation rate accompanied by global geopolitical issues did not significantly change market returns.

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The impact of inflation on growth of market index

Cited by 7 publications

References 11 publications

Efisiensi pasar dan mean-reversion di Indonesia

Efisiensi pasar dan mean-reversion di Indonesia

Pengembalian saham sektor perbankan dalam isu inflasi dan suku bunga

Kondisi pasar Indonesia dalam isu inflasi nasional dan geopolitik global

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