Research Paper
Year: 2019 | Month: August | Volume: 6 | Issue: 8 | Pages: 332-339
The Influence of Macroeconomic Factors on Agricultural Sector Stock Price in Indonesia Stock Exchange
Wahyu Puspitasari, Yusman Syaukat1, Tony Irawan2
1Faculty of Economics and Management IPB University, Indonesia
2Faculty of Economics and Management IPB University, Indonesia
Corresponding Author: Wahyu Puspitasari
ABSTRACT
The dynamicthat hapeen in capital market can influence the stock price index of each sector. The conditions of macroeconomic stability participated in causing the uncertainty of fluctuations in stock prices on the Indonesia Stock Exchange. The agriculture sector stock in the period of 2014 to 2018 experienced the lowest stock movements compared to other sectors amounted -35.62%, besides that the agricultural sector hassmaller market capitalization than other sectors in the Indonesia Stock Exchange. The purpose of this study is to determine the influence of macroeconomic factors on agricultural sector stock prices. The method used in this study was a quantitative method using multiple linear regressions and using SPSS software. Macroeconomic variables used in this study were inflation, interest rate, rupiah exchange rate, world oil price, industrial production index and specific factors of the agricultural sector that is CPO price. The result shows significant relation between inflation, exchange rate and world oil price, while interest rate, industrial production indices and CPO prices did not have a significant relation. While simultaneously macroeconomic factors and specific factors of the agricultural sector influences the agricultural sector stock prices for 85.9% and the remaining 14.1% is explained by other variables outside the research.
Key words: Indonesian capital market, agriculture, macroeconomic, inflation, world oil price, exchange rate, stock price, multiple linear regression
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