ANALYSIS OF FACTORS AFFECTING STOCK PRICE IN PHARMACEUTICAL COMPANIES LISTED ON THE INDONESIA STOCK EXCHANGE (IDX)

Capital market is a way of investment that used by investors to take part in business share ownership of a company. Stock price is one of the aspects that investors consider when deciding whether or not to invest in a capital market. The price of stock is not constant, rather, it changes in response to market circumstances that affected by many factors such as micro and macro factors through the company’s value directly or indirectly. The purpose of this study is to determine the macroeconomic factors (exchange rate, inflation, bank interest rate, and gross domestic product) and trade volume on stock price. Specifically, this study aims to investigate the effect of macroeconomic and trade volume on stock price in pharmaceutical companies. As for methodology, the data collection concluded are 9 companies in pharmaceutical sector listed on Indonesia Stock Exchange in the period of 2019-2021 who represented the population by using purposive sampling technique. The data analysis used are descriptive statistic and multiple linear regression analysis. This study was analyzed using SPSS for applying the analysis. The findings revealed that exchange rate and GDP had significant impact on stock price, while inflation, BI rate, and trade volume all had insignificant impact on stock price in pharmaceutical companies. This research also includes a discussion, limitations, recommendations, and conclusions.
Keywords: exchange rate, inflation, bank interest rate, gross domestic product, trade volume