STOCK MARKET REACTION TO COVID-19 PANDEMIC ON INDONESIA SECTORAL INDEX
The pandemic of COVID-19 is a challenge in many countries worldwide, including Indonesia. The global COVID-19 pandemic also enormously affected the Indonesian stock market. The COVID-19 poses considerable threats to personal lives, including lockdowns for a vast number of individuals. In addition...
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| Format: | Final Project |
| Language: | Indonesia |
| Online Access: | https://digilib.itb.ac.id/gdl/view/62215 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | The pandemic of COVID-19 is a challenge in many countries worldwide, including Indonesia. The
global COVID-19 pandemic also enormously affected the Indonesian stock market. The COVID-19
poses considerable threats to personal lives, including lockdowns for a vast number of individuals. In
addition on extreme death and illness, many people worldwide are terrified of this quickly spreading
viral disease. The peculiar condition of COVID-19 helps one determine the pandemic’s effects on the
financial markets of countries impacted by an unexpected and feared outbreak. The aims of this study
is to investigate the direct impact of COVID-19 pandemic to sectoral stock market return and trading
volume activity in Indonesia. This research will concentrate at the effect of COVID-19 pandemic year
2020 for sectoral in Indonesian Stock Exchange (IDX). This research will use five events, they are
announced the first COVID-19 cases in Wuhan on 31 December 2019 by WHO; announcement of first
confirmed cases in Indonesia; announcement of large social restrictions; announcement of
implementation of new normal era scenario; and announcement about vaccination in Indonesia. For this
research, the writer want to analyze the significant differences of abnormal return and trading volume
activity before and after the event that had been mentioned before. This research will be conducted by
event study. This research found that there are no significant differences in abnormal returns before and
after the events but in the trading volume activity test result are showing some significant differences in
average trading volume activity before and after the events. From the data analysis we can see that each
sector has a different response to events that occur. In the case in Indonesia, it was found that there are
sectors that gain positive abnormal returns and there are also sectors that gain negative abnormal returns |
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