Abstract
This study aims to clarify the effect of the daily number of reported cases of Covid-19, World Oil Prices, World Gold Prices, and the rupiah exchange rate on the movement of the Composite Stock Price Index during the Covid-19 Pandemic, both in the short and long-term. Analysis of the data used is the analysis of Error Correction Mechanism using Eviews software. The data collected is daily time series data from March 2, 2020 to July 30, 2021, so the number of samples collected is 341 samples. The results of the study stated that the increase of daily reported Covid-19 cases had a negative impact on the movement of the Composite Stock Price Index in the short term, however, in the long-term, the increase of daily reported cases of Covid-19 has no effect on the Composite Stock Price Index. Meanwhile, World Oil Prices have a significant positive effect on the Composite Stock Price Index both in the short term and in the long-term. This study did not find any short-term or long-term effect between the World Gold Price on the movement of the Composite Stock Price Index. A significant negative effect was found, both in the short term and in the long-term, in the relationship between the Rupiah Exchange Rate on the movement of the Composite Stock Price Index.
Highlights
The capital market plays a very dominant role in moving the economy in a country
In which the Jakarta Composite Index (JCI) is measured from the overall share price listed on the stock exchange market, both the shares on the main board and those on the developer board
Data related to the Covid-19 Daily Case was obtained from https://kawalcovid19.id, data related to the Composite Stock Price Index was obtained from the website https://www.idx.co.id, and data related to World Oil Prices, World Gold Price data and data on the Exchange Rate of the Rupiah against USD are obtained from the website https://id.investing.com
Summary
The capital market plays a very dominant role in moving the economy in a country. The Composite Stock Price Index (JCI) is one of the indicators of capital market performance. In which the JCI is measured from the overall share price listed on the stock exchange market, both the shares on the main board and those on the developer board. Microeconomics is a factor related to the company's internal conditions. Macroeconomics are factors which affect company performance from outside of the company. Samsul, (2015) explains "macroeconomic factors that can directly affect stock performance consist of 1) general interest rates, 2) inflation rates, 3) tax regulations, 4) government policies, 5) foreign exchange rates, 6) foreign loan rate, 7) international economy, 8) economic cycle, 9) economic understanding, 10) and money circulation” Macroeconomics are factors which affect company performance from outside of the company. Samsul, (2015) explains "macroeconomic factors that can directly affect stock performance consist of 1) general interest rates, 2) inflation rates, 3) tax regulations, 4) government policies, 5) foreign exchange rates, 6) foreign loan rate, 7) international economy, 8) economic cycle, 9) economic understanding, 10) and money circulation”
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