The Investor Sentiment and Market Reaction Before and During The Covid-19 Pandemic on Indonesia Stock Exchange

DOI

10.2991/aebmr.k.220701.024How to use a DOI?

Keywords

Consumer Confidence; Investor Sentiment; Stock Prices; Stock Volume; IHSG

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 a quantitative approach. The results prove that before the covid- 19 pandemic investor sentiment did not influence the 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 does not affect 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.

Copyright

© 2022 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article distributed under the CC BY-NC 4.0 license.

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TY  - CONF
AU  - Ernawati Ernawati
AU  - Nugraha Nugraha
AU  - Ikaputera Waspada
AU  - Maya Sari
PY  - 2022
DA  - 2022/07/12
TI  - The Investor Sentiment and Market Reaction Before and During The Covid-19 Pandemic on Indonesia Stock Exchange
BT  - Proceedings of the 6th Global Conference on Business, Management, and Entrepreneurship (GCBME 2021)
PB  - Atlantis Press
SP  - 118
EP  - 124
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220701.024
DO  - 10.2991/aebmr.k.220701.024
ID  - Ernawati2022
ER  -