Analysis of global stock index, inflation and interest rates on the Indonesia Stock Exchange joint stock price index

Dahlia Pinem, M.B. Nani Ariani and Desmintari
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Dahlia Pinem: Faculty of Economics and Business, University of Pembangunan Nasional Veteran, Jakarta, Indonesia
M.B. Nani Ariani: Faculty of Economics and Business, University of Pembangunan Nasional Veteran, Jakarta, Indonesia
Desmintari: Faculty of Economics and Business, University of Pembangunan Nasional Veteran, Jakarta, Indonesia

International Journal of Research in Business and Social Science (2147-4478), 2023, vol. 12, issue 3, 308-317

Abstract: This study examines the influence of global stock indices and macroeconomic conditions in Indonesia on the Jakarta Composite Index (JCI). The global stock indices analyzed in this study are the Dow Jones Industrial Average (DJIA), Nikkei 225 (N225), Shanghai Stock Exchange Composite (SSE), Strait Singapore index. The macroeconomic indicators that analyzed in this study are the inflation rate, the US dollar exchange rate against the Indonesian rupiah, and the BI rate. This study was conducted using secondary data. The research period was 3 years for 36 months from January 2018 to December 2020. The data used in this study are secondary data with a sample collection method using Purposive Sampling against JCI. Data analysis in this study was carried out using Microsoft Office Excel 2016, as well as hypothesis testing using panel data regression analysis with the Eviews program version 10.0 with a significance level of 5%. Research Results The results showed that in the short term, Index DJIA, Nikkei Index 225, Interest rates positively affect the movement of JCI. This suggests that an increase in the DJIA index, Nikkei 225 Index, and interest rates will result in an increase in the JCI, While Shanghai Index, STI, Inflation does not affect the JCI. Key Words:Global Stock Indices, Inflation, Interest rates

Date: 2023
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