General Election and Stock Market Performance: A Malaysian Case

Misman, Faridah Najuna; Roslan, Shashazrina; Aladin, Muhammad Izzat Mat

doi:10.5430/ijfr.v11n3p139

Cited by 6 publications

(9 citation statements)

References 17 publications

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“…It has been reported that the net foreign fund outflow in 2018 for Malaysia totalled RM11.65 billion. 14 The last factor that adversely impacted the stock market was investor sentiment. Issues such as unresolved trade wars, lower oil prices, and geopolitical tension had refrained investors from securities investment.…”

Section: Resultsmentioning

confidence: 99%

Performance profiling of the unit trust funds in Malaysia with data mining techniques

Khairuddin

Khor

2021

F1000Res

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Background: Millennials are exposed to many investment opportunities, and they have shown their interest in gaining more income via investments. One popular investment avenue is unit trusts. However, analysing unit trusts’ financial data and gaining valuable insights may not be as simple because not everyone has the required financial knowledge and adequate time to perform in-depth analytics on the numerous financial data. Furthermore, it is not easy to compile the performance of each unit trust available in Malaysia. The primary objective of this research is to identify unit trust funds that provide higher returns than their average peers via performance profiling. Methods: This research proposed a performance profiling on Malaysia unit trust funds using the two data mining techniques, i.e., Expectation Maximisation (EM) and Apriori, to assist amateur retail investors to choose the right unit trust based on their risk tolerance. EM clustered the unit trust funds in Malaysia into several groups based on their annual financial performances. This was then followed by finding the rules associated with each cluster by applying Apriori. The resulted rules shall serve the purpose of profiling the clustered unit trust funds. Retail investors can then select their preferred unit trust funds based on the performance profile of the clusters. Results: The yearly average total return of the financial year 2018 and 2019 was used to evaluate unit trust funds’ performance in the clusters. The evaluation results indicated that the profiling could provide valuable and insightful information to retail investors with varying risk appetites. Conclusions: This research has demonstrated that the financial performance profiling of unit trust funds could be acquired via data mining approaches. This valuable information is crucial to unit trust investors for selecting suitable funds in investment.

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Section: Resultsmentioning

confidence: 99%

Performance profiling of the unit trust funds in Malaysia with data mining techniques

Khairuddin

Khor

2021

F1000Res

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“…Against the backdrop of Malaysia, Misman et al (2020) investigate the Malaysian stock market reactions surrounding Malaysian general elections using ordinary least squares (OLS) for election cycles from GE10 to GE14. The authors conclude that the Malaysian stock market does register substantive changes surrounding general elections.…”

Section: Brief Literature Reviewmentioning

confidence: 99%

“…Against the backdrop of Malaysia, Misman et al. (2020) investigate the Malaysian stock market reactions surrounding Malaysian general elections using ordinary least squares (OLS) for election cycles from GE10 to GE14.…”

Section: Brief Literature Reviewmentioning

confidence: 99%

Elections and financial markets puzzle: Malaysian evidence

Mohamad

2022

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PurposeThis paper aims to explore the election cycle and financial markets puzzle in a unique emerging market like Malaysia.Design/methodology/approachBy employing an event-study methodology and wavelet analyses, the author tests for uncertain information hypothesis by examining the reactions of the Kuala Lumpur Composite Index (KLCI) and ringgit surrounding Malaysian general elections, spanning from GE5 (1978) to GE14 (2018). This paper also explores the relationship between KLCI and ringgit.FindingsWhile the author does not find support for the uncertain information hypothesis, the author uncovers that KLCI tends to overreact following elections, regardless of the winning coalition. The author also records no relationship between KLCI and ringgit in the short run, but the author observes that ringgit leads KLCI in the long run.Practical implicationsThe study’s findings bear implications for investors' disposition in the Malaysian equity market. Investors should square off their positions before the general elections to avoid equity market overreactions and potential losses.Originality/valueBefore Malaysia GE14 (2018) general election, Barisan Nasional carried the reputation as one of the longest-serving ruling coalitions in the world since Malaya independence in 1957. However, the ruling coalition was voted out in GE14 (2018), and the Malaysian equity has since dropped.

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“…Jha, Bhattacharya, and Bhattacharya (2019) find that a surge in Google search queries is linked to an increase in trading activity and stock liquidity in NSE. In other context, a recent study by Misman, Roslan, and Aladin (2020) state that the 14th general election in Malaysia has a significant impact on the stock market performance.…”

Section: Related Researchmentioning

confidence: 99%

Stock Market Reforms and Stock Market Performance

Chellaswamy

Natchimuthu

Faniband

2021

IJFR

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This paper analyses the impact of stock market reforms on the stock market performance in India using regression based event-study method. We consider nine stock market reforms introduced from 1998 to 2018. We find that the impact of stock market reforms on Nifty trading volume and Nifty return is different. This paper documents that the impact of the additional volatility measures, T+3 and T+2 settlement cycles, and margin provisions for intra-day crystallized losses reforms show a positive impact on trading volume post-reform. In contrast, internet trading, prohibition of fraudulent and unfair trade practices, delisting of equity shares, substantial acquisition of shares and takeovers listing obligations and disclosure requirements reforms decrease the trading volume post-reform. Our results of Nifty return reveal that the additional volatility measures, the T+2 settlement cycle, the prohibition of fraudulent and unfair trade practices, substantial acquisition of shares and takeovers, listing obligations and disclosure requirements have a significant and positive impact on return post-reform. It is evident that the impact of all nine stock market reforms is insignificant on Nifty return.

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General Election and Stock Market Performance: A Malaysian Case

Cited by 6 publications

References 17 publications

Performance profiling of the unit trust funds in Malaysia with data mining techniques

Performance profiling of the unit trust funds in Malaysia with data mining techniques

Elections and financial markets puzzle: Malaysian evidence

Stock Market Reforms and Stock Market Performance

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