The Impact of Macroeconomic and Gold Prices on Stock Prices: A Comparative Study of Islamic and Conventional Banks
Deky Candra Saputra1, Sulistya Rusgianto2, Azrul Afrillana Awaludin3

1 Islamic Economics Departement, Faculty of Economics and Business, Universitas Airlangga, Surabaya
2 Islamic Economics Departement, Faculty of Economics and Business, Universitas Airlangga, Surabaya
3 Islamic Economics Departement, Faculty of Economics and Business, Universitas Airlangga, Surabaya

Abstract

In the realm of financial analysis, the intricate relationship between macroeconomic conditions, global gold prices, and stock market performance has garnered considerable attention. As global economic uncertainties persist, a nuanced understanding of how macroeconomic factors influence stock price dynamics becomes increasingly imperative. This research endeavors to scrutinize the impact of inflation, interest rates, and gold prices on the stock prices of both Islamic and conventional banks in Indonesia. Leveraging monthly secondary data spanning from January 2021 to December 2023, the study employs panel data regression analysis employing the Random Effect Model. The findings unveil a significant negative correlation between inflation and Islamic bank stock prices, whereas interest rates exhibit no discernible effect. Conversely, inflation demonstrates a significant positive correlation with conventional bank stock prices, along with interest rates. However, global gold prices fail to exert a significant influence on the stock prices of either Islamic or conventional banks. These results furnish deeper insights into the intricate interplay of macroeconomic factors shaping the stock market performance of Islamic and conventional banks in Indonesia.

Keywords: Macroeconomics, Global Gold Prices, Stock Prices, Islamic Banks, and Conventional Banks

Topic: Islamic capital market