The Effect of Changes in Gold and Nickel Prices on Stock Return of Mining Sector Company

Akbar Rahmat Ramadhan, Sudarto Sudarto, Ary Yunanto


The purpose of this study was to examine the effect of changes in gold and nickel prices on stock returns
with the Jakarta Composite Index (JCI) as a control variable. This study wants to see whether changes in
gold and nickel commodity prices on the world market caused by market sentiment can affect the stock
returns that investors will get. The object of this research is a mining company in the metal and mineral
sub-sector, which produces these two products (gold and nickel). The data used is quarterly data, with a
research period from June 2018 to July 2021. After the data passes the classical assumption test, this data
is retested level of influence by using panel data with twice the test model. Afterwards testing, the results
of this study indicate that changes in gold prices do not have a positive effect on mining companies. This
is because mining companies in Indonesia do not all produce gold. In contrast, nickel prices can
consistently affect mining company stock returns. This is because nickel products are the largest
contributor to sales in Indonesia. Gold and nickel are commodities that are very sensitive to market
sentiment, so mining companies must be careful so that their stock returns remain attractive in the eyes of
Keywords: Gold; Nickel; JCI; Stock Returns; Mining.

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