The Influence of Fundamental and Macroeconomic Factors on Stock Prices of Basic Materials Sector Companies Listed on the Indonesia Stock Exchange (IDX) from 2021 to 2025

Abstract

Stock price movements among basic materials sector issuers on the Indonesia Stock Exchange (IDX) are influenced by internal corporate financial conditions and macroeconomic shifts. This study examines the impact of Return on Equity (ROE), Current Ratio (CR), Earnings per Share (EPS), exchange rates, and economic growth on stock prices in this sector from 2021 to 2025. Utilizing a quantitative approach, secondary panel data were collected from official reports published by the IDX, Bank Indonesia, and the Central Bureau of Statistics (BPS). Purposive sampling selected 27 companies, yielding 128 observations analyzed via the Fixed Effects Model (FEM) in EViews 12. The empirical findings indicate that ROE does not significantly affect stock prices. Conversely, CR, EPS, and the exchange rate significantly and negatively influence stock prices, while economic growth exhibits a significant positive impact. Jointly, all independent variables simultaneously affect stock prices, with an R-squared (R2) value of 97.55%. These insights indicate that equity valuation in this industry is highly responsive to liquidity, per-share earnings, currency depreciation, and overall economic progress. Consequently, investors and executives must evaluate these metrics to optimize strategies.