ANALYZING FACTORS AFFECTING STOCK PRICE MOVEMENT OF BANKING SECTOR IN INDONESIA STOCK EXCHANGE
Abstract: The stock market is
all about dynamics and that is why investors and fund managers have always been
confronted with the problem of accurately predicting the stock prices so as to
earn decent returns. Investment in shares offers the benefit of liquidity as
well as the opportunity to beat the market and earn high returns. However, the
task of predicting share prices is far from simple. Share price movement is not
independent in nature and both intrinsic, as well as extrinsic factors, have
been established to exercise influence over stock price movements. The purpose
of this research is to analyze factors influencing stock price of the banking
sector in the Indonesian Stock Exchange index. The objects of this research are
banking stocks that are listed in Indonesia Stock Exchange. This research is an
explorative study and uses a quantitative method which utilizes technical
analysis and t-test as the tool of analysis. The research results show that the
upward movement of banking stocks happened in the year 2008 and the factor
influencing this movement is the increase in interest rate announcement by Bank
Indonesia. Recommendation derived from this research is for investors and fund
managers to give more attention towards announcement and interest rate of a
sector in the country in their investment portfolio.
Keywords: stock price,
interest rate, political effects, economic effects
Penulis: Karina Roseline
Angkouw, Sifrid S. Pangemanan, Merinda Pandowo
Kode Jurnal: jpmanajemendd180256
