Good Information For You, The Tours In Indonesia

Economic Note 03Sep02 Kahlil Rowter with statistical assistance by Yulia Ansari The Jakarta Stock Market: Regional Influence Regional stock indices movements are commonly used as explanation for swings in the Jakarta market. Not all the time, mind you, only when the directions are similar. Conversely when the direction differs domestic reasons are then invoked. How other market indices influence one’s own can be attributed at least to two factors. First, when a few markets are lumped together, a rising index in one member means an automatic price re-evaluation of the others. Second, rationale for changes in one member’s affects other members through contagion. For example: if Korea’s index declines due to concerns over a slowing US economy, then a similar rationale should also affect Taiwan. From a statistical point of view, the interesting question is does movements in regional indices affect the JCI? If the answer to the first question is yes then we can ask next do the regional indi