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International Journal of Academic Research in Accounting, Finance and Management Sciences

Open Access Journal

ISSN: 2225-8329

The Determinant of Mining Sector Stock Price Index at Indonesia Stock Exchange

Nitha Malla, Abitur Asianto

http://dx.doi.org/10.6007/IJARAFMS/v10-i3/7678

Open access

This research has purposed to analyze these determinants from mining sector stock index at Indonesia Stock Exchange. This research used the Vector Error Correction Model and monthly data on mining sector stock index as dependent variable and the independent variables were inflation, BI interest rate, Gross Domestic Product, exchange rate, demand and supply of coal, coal prices and world crude oil prices from January 2014 to August 2019. These empirical results shows that shocks variable on inflation, coal supply & demand, coal prices and crude oil prices will be responded positively by mining sector stock index in the long term while shocks variable on GDP, BI interest rates and exchange rates will be responded negatively by mining sector stock index in long-term. It means all variables are determinant of mining sector stock price index at IDX. Coal demand variable would contribute dominantly to the fluctuation of mining sector stock index. The increased in coal demand will be followed by increased in mining sector stock index.