STOCKSCAPE ANALYSIS: THE IMPACT OF INTEREST RATES, GDP GROWTH, AND PROFITABILITY ON STOCK RETURNS IN INDONESIA'S PROPERTY MARKET

Abstract

This study investigates the intricate relationship between economic growth, monetary policy, and financial indicators, primarily focusing on their impact on stock returns in the capital market. Recognizing the complexity of stock returns as a pivotal aspect for investors and financial analysts, this research delves into the critical factors that shape these returns. Utilizing data obtained from www.bi.go.id, this study examines the fluctuating trends in Indonesia's average interest rates from 2011 to 2019, highlighting the profound influence of these rates on investment decisions. Moreover, insights drawn from www.bps.go.id and www.idx.go.id elucidate the varying patterns in Indonesia's Gross Domestic Product (GDP) growth and Return on Equity (ROE) of property sector companies during the same period.

The analysis underscores that interest rates wield substantial attractiveness for investors, with fluctuations potentially impacting investment choices between stocks and other financial instruments. Moreover, the study underscores the interplay between GDP growth, sales turnover, company profits, and subsequent stock price increments, emphasizing the significance of macroeconomic factors in determining stock returns. Highlighting the role of financial reports, the research emphasizes the correlation between sound financial performance and positive company operations, corroborating how good financial indicators often coincide with successful operations.

In navigating investment decisions, investors are urged to assess risks judiciously. The study suggests that a comprehensive analysis combining technical and fundamental assessments offers a robust approach to mitigate potential capital losses. This research contributes to a nuanced understanding of the intricate dynamics that underlie stock returns, providing investors with valuable insights for informed decision-making.