Open AccessDOES THE MARKET REACT TO A NEW ISLAMIC INDEX AMID THE COVID-19 PANDEMIC IN INDONESIA?
Author(s) -
Bambang Sutrisno,
Jaharuddin Jaharuddin,
Masruri Muchtar,
Ahmad Rodoni
Publication year - 2022
Publication title -
jurnal ekonomi trisakti (e-journal)
Language(s) - English
Resource type - Journals
ISSN - 2339-0840
DOI - 10.25105/jet.v2i1.13554
Subject(s) - index (typography) , abnormal return , covid-19 , islam , business , stock exchange , event study , stock market index , pandemic , stock market , sharia , financial system , medicine , finance , geography , computer science , context (archaeology) , disease , archaeology , world wide web , infectious disease (medical specialty)
In collaboration with the Sharia Economic Community (MES), Indonesia Stock Exchange (IDX) launched a new Islamic index called IDX-MES BUMN 17 on 29 April 2021. This study aims to investigate market reaction to the issuance of the IDX-MES BUMN 17 index. This study employs event study methodology. The market-adjusted model measures the abnormal return. The results show that overall, the market reacts negatively around the launch of the IDX-MES BUMN 17 index. The negative and significant abnormal return was only found on the eighth day after the index launch. This study has important implications for investors and regulators.