Analysis of investor sentiments and macroeconomic variables effects to islamic stock index in Indonesia

Herjuno Bagus Wicaksonoputro, Tika Arundina

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

This study examines the level of exposure Islamic stock price indices in Indonesia to the relative change in investor sentiment index and macroeconomic factors. This study observes the influence of investor sentiment represent by Consumer Confidence Index (CCI), and several macroeconomics variables such as Indonesia Composite Index, industrial production index, consumer price index, exchange rate, money supply, and interest rates to the price of Jakarta Islamic Index. It conducts the ordinary least square (OLS) test with the monthly data from January 2006 to June 2016. Surprisingly, the study reports that CCI statistically shows significant influence in Islamic Price Index in Indonesia. This result raises the debates on sharia complaint requirement on Islamic capital market instruments since speculation is prohibited in Islam and sentiment investor allows the price to change more than the fundamental condition. Apart from that, other variables such as Indonesia Composite Index, and money supply are also found significant to affect Islamic Price Index in the case of Indonesia.

Original languageEnglish
Title of host publicationProceedings of the 32nd International Business Information Management Association Conference, IBIMA 2018 - Vision 2020
Subtitle of host publicationSustainable Economic Development and Application of Innovation Management from Regional expansion to Global Growth
EditorsKhalid S. Soliman
PublisherInternational Business Information Management Association, IBIMA
Pages2593-2602
Number of pages10
ISBN (Electronic)9780999855119
Publication statusPublished - 1 Jan 2018
Event32nd International Business Information Management Association Conference, IBIMA 2018 - Seville, Spain
Duration: 15 Nov 201816 Nov 2018

Publication series

NameProceedings of the 32nd International Business Information Management Association Conference, IBIMA 2018 - Vision 2020: Sustainable Economic Development and Application of Innovation Management from Regional expansion to Global Growth

Conference

Conference32nd International Business Information Management Association Conference, IBIMA 2018
Country/TerritorySpain
CitySeville
Period15/11/1816/11/18

Keywords

  • Consumer Confidence Index
  • Investor sentiment
  • Islamic price index return

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