JEFMS Journal

ABSTRACT:

Penny stock manipulation refers to unethical and illegal practices in the stock market which involve the manipulation of share prices and trading volumes with the aim of generating undue profits for the manipulators. The purpose of this study is to detect manipulation of penny stocks in Islamic stocks registered on ISSI in 2022. This type of research is qualitative research using technical analysis of candlestick indicators, moving averages, and volume. The results showed that there was manipulation of penny stocks in Islamic stocks including shares of PT Winner Nusantara Tbk (WINR), PT Wahana Pronatural Tbk (WAPO), PT Damai Sejahtera Abadi Tbk (UFOE), and PT Sunter Lakeside Hotel Tbk (SNLK) companies. This stock has a low market cap and liquidity, candlestick patterns and volume detects movements that tend to fluctuate, and is included in the UMA (Unusual Market Activity) list which has unusual transactions. In the context of Sharia, penny stock manipulation can lead to doubts and distrust in the Islamic capital market as a source of investment that is in accordance with Islamic values. This underscores the importance of upholding the integrity of Sharia-compliant capital markets and implementing strong supervisory mechanisms to protect investors from manipulative practices while adhering to Shariah principles

KEYWORDS:

Penny Stock Manipulation, Technical Analysis, Islamic Stocks

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