Investor Sentiment And Market Reaction Before And During The Covid-19 Pandemic On Indonesia Stock Exchange Ernawati-Nugraha-Ikaputera Waspada-Maya Sari
Universitas Pendidikan Indonesia
Abstract
This research was conducted to analyze investor sentiment on market reactions over two different periods. The analysis was conducted before and during the covid-19 pandemic on the Indonesia Stock Exchange. Investor sentiment uses trading volume proxies and consumer confidence indexes while market reactions use The Composite Stock Price Index (IHSG) proxy. Data collection with documentation and using quantitative approach. The results prove that before the covid-19 pandemic investor sentiment had no influence on market reaction. On the contrary, during the covid-19 pandemic investor sentiment influenced the market reaction. Trading volume is a variable that has a positive and significant effect on IHSG, otherwise the consumer confidence index has no effect on IHSG. During the pandemic the share price was at a low point and consumer confidence dropped to pessimistic. At short-selling irrational investors will tend to make transactions, when their pessimistic investors buy falling stocks in the hope of higher returns after the pandemic. Investor sentiment causes a difference in stock price sensitivity patterns. Investor sentiment produced by trading volume is a source of positive risk caused by information that existed during the Covid-19 pandemic.
