Impact of Price and Export Quantity on Stock Price: A Case of Agri-Business in Indonesia

Ability to predict the stock price of agribusiness is essential and important as agribusinesses are known to be relatively high risk venture especially commodity based business such as CPO. For investor, it is important to know the factors that affect such price in order to minimize or at least to manage risk associated with such investment. The objective of the study is to explore factors that influence stock price of agribusiness. We begin by assuming that Malaysia CPO price and the quantity of export determine the stock price. A case of CPO Company in Indonesia was selected and its stock price was studied in relation to the mentioned factors. A multiple regression analysis was utilized to test hypothesis. The study indicates that Malaysia CPO price positively affect stock price of the company while for quantity of exports the results indicates that there is not enough evidence to conclude its significant influence on the stock price. It is recommended to always pay attention to the Malaysian CPO price prior to making investment decision on this stock.