The Impact of Macroeconomic Factor and Neighboring Countrys Stock Index Predisposes on LQ45 Stock Index Tiar Lina Situngkir (a), Nugraha (b), Ikaputera Waspada (c), Maya Sari(d)
Post Graduate School, Indonesian University of Education (a,b,c,d)
Jl.Setia Budi no.229 , Bandung
Abstract
This study aims to investigate the macroeconomic factors, represented by inflation meanwhile for the neighboring countries stock price index is the Singapore stock price index (STI) in influencing volatility of LQ45 stock price index on the Jakarta stock exchange. The data used are secondary data from the period of January 2013 to December 2019. The method used is the Error Correction Model. This method will consider long-term and short-term analysis of the influence of macro variables affecting the LQ45 Stock Price Index. The results depicted that in the short-term period both inflation and STI Index had no significant influence on the LQ45 stock price index, then for the long term period both inflation and STI stock indexes detemine on the LQ45 stock price index.
