Proceedings of the 2nd International Conference on Contemporary Risk Studies, ICONIC-RS 2023, 21-22 September 2023, Bali, Indonesia

Research Article

Impact of Crude Oil Prices and Buying Value of Foreign Investors to Stocks Prices on the Indonesia Stock Exchange Oil and Gas Sector during the Early Period of the COVID-19 Pandemic

Download17 downloads
  • @INPROCEEDINGS{10.4108/eai.21-9-2023.2347037,
        author={Komang  Indrayana and Marsuki  Marsuki and Anas Iswanto  Anwar and Sri Undai  Nurbayani},
        title={Impact of Crude Oil Prices and Buying Value of Foreign Investors to Stocks Prices on the Indonesia Stock Exchange Oil and Gas Sector during the Early Period of the COVID-19 Pandemic},
        proceedings={Proceedings of the 2nd International Conference on Contemporary Risk Studies, ICONIC-RS 2023, 21-22 September 2023, Bali, Indonesia},
        publisher={EAI},
        proceedings_a={ICONIC-RS},
        year={2024},
        month={6},
        keywords={stock price foreign investor brent oil covid-19 stock investment},
        doi={10.4108/eai.21-9-2023.2347037}
    }
    
  • Komang Indrayana
    Marsuki Marsuki
    Anas Iswanto Anwar
    Sri Undai Nurbayani
    Year: 2024
    Impact of Crude Oil Prices and Buying Value of Foreign Investors to Stocks Prices on the Indonesia Stock Exchange Oil and Gas Sector during the Early Period of the COVID-19 Pandemic
    ICONIC-RS
    EAI
    DOI: 10.4108/eai.21-9-2023.2347037
Komang Indrayana1,*, Marsuki Marsuki1, Anas Iswanto Anwar1, Sri Undai Nurbayani1
  • 1: Hasanuddin University
*Contact email: k.indrayana@outlook.com

Abstract

Investing purpose is profit, even though stock investment is risky and there is uncertainty. The COVID-19 pandemic caused macroeconomic uncertainty. The quarantines and social restrictions impacted decreasing demand and falling Brent oil prices by approximately -78%, collapsing the price of oil and gas companies' stocks; for example, MEDC declined circa -69%, and ELSA -63%. Foreign investors sold off their stocks. So, it is interesting to analyze the correlation between Brent oil prices, the buying value of foreign investors, and the stock prices of oil and gas companies. It utilized linear regression using the IBM SPSS Amos program. The result shows that Brent crude oil prices and the buying value of foreign investors account for 44.9% of stock price variations positively and significantly. There is no significant correlation between Brent crude oil prices and the buying value of foreign investors.