Analysis shows macroeconomic factors and profit growth do not significantly impact stock prices in defensive industries, indicating sector-specific influences instead.
Key Points
Stock prices in Indonesia's pharmaceutical sector showed no significant relationship with inflation and interest rates, which may challenge conventional wisdom.
Profit growth, while important for firm performance, displayed no significant correlation with stock prices across eight pharmaceutical companies studied from 2014 to 2020.
This observational analysis highlights the limited role of macroeconomic indicators in predicting stock performance in defensive industries like pharmaceuticals.
Findings suggest that investors should prioritize sector-specific policies and market dynamics over traditional economic measures.