Stock Market Reaction of Pharmaceutical Sector Companies to the Announcement of the Covid 19 Endemic in Indonesia

Abstract

The transition period from the pandemic to the endemic covid 19 in Indonesia had an impact on increasing the Jakarta Composite Index on the Indonesia Stock Exchange, however, the stock prices of pharmaceutical sector companies decreased one day after the endemic announcement date. Based on this phenomenon, this study aims to analyze market reactions that cause abnormal returns in pharmaceutical sector companies listed on the Indonesia Stock Exchange. The population used in this study were pharmaceutical sector companies listed on the Indonesia Stock Exchange with a total sample size of 110. The data analysis method used was a descriptive analysis approach. The results of this study indicate that there is an increase in abnormal returns during the transition from the pandemic to the endemic Covid-19 in pharmaceutical sector companies in Indonesia.