International capital flow in relation with stock performance of plantation industries in Indonesia stock market
Recently there are problems happened in the financial sector in some countries. At thernyear 2007, crisis in America lead the world crisis. Because of this, decline in thernmacro economies started to rise, such as high inflation rate and unemployment rate.rnFurthermore, capital market also starts to diminish gradually. It becomes no morernattractive to invest in the capital market and the investors tend to pull out their money,rnand look for some alternatives to expand their investments. Some foreign investorsrnfrom the develop countries suffered a decline in their income from investment.rnFinding out the investment alternative, they see the opportunities to gaining profitrnfrom investing in the developing countries. Developing countries such as Asiarncountries becomes their main destination. The fascination of high return becomesrnmore interesting because they can earn higher profit from investing in the emergingrneconomies.rnBased on this condition, this thesis has a purpose to analyze performance of stock thatrngreatly attracts international capital flow to Indonesia Stock Market, focusing on thernplantation industries? stock. The measurement will be based on the plantation companies? data for 6 years, from the period 2005 ? 2010 to get better view about thernproportion of foreign ownership in Indonesia stock market.rnThe methodology of this research will focus on examining the stock performance andrnprice fluctuation on plantation industries? stock price to the proportion of capital flowrnin Indonesian stock market. In addition, some ratio analysis can also be implementedrnas the indicator to predict the stock price. However, this technique should be knownrnbeforehand, by referring to the company financial data. Throughout the research, therernhave been some interesting findings. It is proven that there is a relationship betweenrninternational capital flow and the stock performance of plantation industry. Even so,rnthe presence of external factor can?t be ignored because it is closely related with therncondition of the foreign flow to Indonesia.
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