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IPI and Exchange rates behaviour are some of the
important macroeconomic indicators that need to be
taken into account. It evidences that these variables
are influencing stock indices especially in the long
run. The need to focus on the stock indices is
important since it contains hot money whereby
money flows in and out very abruptly. Flows in due
to good economic performance and flows out
otherwise. Ensuring the real sector and stabilizing the
exchange rate would lead money to rigidly flow out.
This is important given the fact that Indonesia still
significantly import raw material from abroad and
certainly it affects the overall price of good and
services
The existing Islamic Stock Index is composed of
stocks which are also traded in the general index
(JKSE) which means the stocks are within two or
more indexes. For the further recommendation, it is a
need to think about specific Islamic index whereby it
composes stocks within that islamic index and not
part of general index. This index allow us to seek its
pure contribution of Islamic index to the economy in
general.
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