Analysis of the Effect of External Factors on Sharia Capital Market Dynamics [Study on the Jakarta Islamic Index 2016-2021 Period]

The purpose of the study was to analyze the effect of inflation, the exchange rate of Rupiah/US$, and the amount of money in circulation on the Jakarta Islamic Index (JII). This study uses monthly data for the period 2016 - 2021 published on the Indonesia Stock Exchange website. The data were tested using descriptive statistical analysis methods and multiple linear regression. The results of the analysis and hypothesis testing show that inflation has a positive and significant effect on JII, the Rupiah/US$ exchange rate has a negative and significant effect on JII, and the money supply has no significant effect on JII. The model in this study is feasible to explain the dynamics of the Islamic capital market.