The HISTORY OF PROPERTIES STOCK IN MALAYSIA

With investors holding an increased appetency for belongings in recent old ages, this has resulted in important growing in assets under direction for the major belongings fund directors and planetary belongings securities financess. These important capital influxs and increased competition for belongings assets have seen output compaction in the major mature belongings markets in 2005-2007, with a ensuing increased focal point on the possible strategic function for international belongings investing. Major factors besides lending to this increased international belongings exposure have included the demand for portfolio variegation, potency for higher returns, lower cost of capital and favorable exchange rates. Recent surveies have besides highlighted the portfolio variegation benefits of international direct and indirect belongings in a mixed-asset portfolio.

Since the belongings market recovery in 1988-89, the figure of listed belongings companies has doubled in Numberss on the Property Sector of the Kuala Lumpur Stock Exchange ( KLSE ) . Despite the addition in the figure of belongings companies, the market capitalization of the Property Sector has increased by a mere 13.8 % over 1989.This is in contrast with the pre-currency crisis of RM57.8 billion market capitalization of the Property Sector in 1996. Among the belongings plus intensive sectors, the market capitalization of the Property Sector is about the same size as the Plantation Sector as at terminal 2000. It is interesting to observe that the market capitalization of the Property Sector moves in tandem closely to that of the Plantation Sector. Currently, there are 86 belongings companies listed on the Main Market. Most of these companies are active as belongings development companies transporting out lodging development. Property portions are popular among investors particular little investors.

Property stocks is existent estate investings that characterized as illiquid, expensive, holding long market rhythms, and holding values that are difficult to measure. We raise the inquiry of whether investors react otherwise to securitized existent estate investings. In peculiar, we choose two facets of investors ‘ behaviour, viz. crowding and positive feedback trading. From the market microstructure point of position, we through empirical observation analyze how investors invest on securitized existent estate investings, and compare the herd behaviour and positive feedback trading with those in other securities.

In 1998, Malaysia one time once more confronting a really bad fiscal crisis. At that clip, a batch of concern demand to be closed and people are more salvaging instead than passing their money. What happens to the belongings market at that clip? Is it belongings market besides affected or non? Head of the International Monetary Funds ( IMF ) , Michel Camdessus publically stated in a address on 17th June 1997 that “ Malaysia is a good illustration of a state where the governments are good cognizant of the challenges of pull offing the force per unit areas that result from high growing and of keeping a sound fiscal system amidst significant capital flows and the dining belongings market. When the economic system is down, people take a careful expression at their investings. Prior to taking to put farther, so excessively must they see their options. Two popular investing options are leveraged investings in either belongingss or portions. All leveraged investings are non made likewise, though.

1.1 BACKGROUND OF STUDY

As we know many investors predict the market mentality for belongings sector in 2011 is expected to be risen from 2010 as their assurance towards Malaysia ‘s strong fundamental will do belongings sector more attractive. Besides, authorities planned to promote belongings companies by injected immense investing as to increase the employment chance and for farther economic system enlargement. Therefore, the chief aim for this survey is to acquire the best portfolio choice for belongingss sector investing by finding the hazard and return of each belongings company listed in the chief market.

Using six methods of survey which are Treynor index, Jensen Alpha index, Sharpe index, Adjusted Jensen Alpha, Adjusted Sharpe and Information Ratio to happen the return of hazard and return for each belongings stock and evaluation from outperform to underachieve stock. Then we will choose the best three stocks to include in the portfolio choice. This survey will assist the investors to do the right and accurate determinations towards their investing in this sector. The shutting monetary value of 86 belongings companies will be collected and analyzed to work out the aims of survey.

1.2 PROBLEM STATEMENT

Investing in belongings sectors can be classified as the cardinal investing determination where usually they put their money in long term and hope for the monetary value to hike up subsequently. The accommodation of belongings investing construction in Malaysia is a portion of the overall alteration in the economic and industrial construction in Malaysia. Owing to tremendous restructuring of planetary economic sciences every bit good as restraints from land supply, support, natural stuffs and H2O beginnings in Malaysia, it becomes a focal point of universe attending as to how to do full usage of rare beginnings in Malaysia. The belongings industry has been considered in Malaysia as anchor industry in its present economic development and hence the importance of seting the belongings investing construction is obvious. Through this survey we are interested to cognize which belongings stocks are underperform and outperform every bit good as which stocks has the highest ranking for six old ages clip. In add-on, the survey will assist us to find the best portfolio choice for belongings sector by utilizing correlational survey of six methods.

1.3 RESEARCH Question

In this survey, there are several research inquiries that has been developed sing the job statement occurred. The research inquiries for this undertaking attempts to reply are as follows:

1. Whether the public presentation of the stock is outperform or underperform?

2. Which stock is the highest ranking?

3. Which stock to be selected?

1.4 OBJECTIVE OF STUDY

Through this survey, there a few aims of this research. They are:

1. To place the public presentation of belongingss stock in Malaysia.

2. To happen the belongingss stock that most stable.

1.5 SIGNIFICANT OF THE STUDY

A few Numberss of surveies in belongings stocks in Malaysia have been conducted. Most of the survey is identify on belongings direction, rating and besides building and updating belongings monetary value index series. Merely a little figure of international surveies that concentrating on the determiners of belongings portfolio choice in Malaysia. This survey will give important to the other research worker consecutively to acquire the some thought for farther research on this sector. Other than that, it hopes that the research worker will acquire a better understanding about the determiners of belongings stocks public presentation and research worker besides hopes to acquire some extra cognition in garnering the information about the Malayan belongingss stocks. Beside this survey will assist investors to do the right investing determination and path market opportunities as it provides the best portfolio choice based on the stocks public presentation by tracking their hazard and return for the investing. For pupils, the survey can assist to increase their cognition towards the equities market motion particularly on belongings stocks. This will ease the belongings companies itself to better themselves every bit good as for farther research and design.

1.6 SCOPE OF STUDY

The range of this survey would cover the stock monetary values of the belongingss company listed in Bursa Malaysia. There are 86 belongings companies that listed in Main Market. Most of these companies are active as belongings development companies transporting out lodging development.

Kuala Lumpur Composite Index ( KLCI ) and Treasury Bills acts as benchmark for each company that will find their return and besides with the hazard. Return and hazard for each belongings stock will find the rank for each company and the stock to be selected.

While, this survey will cover from twelvemonth 2005-2010. All the information which is from January until December for each old ages get from Bursa Malaysia to guarantee their truth. Inaccuracy of informations will act upon to the misleading of this research.

1.7 LIMITATION OF STUDY

In this research there are several variables may empirical to the research and besides can considered but beyond the control of the research worker. There are:

1.7.1 Data truth

Most of the information in this survey is chiefly gathered from assorted secondary informations such as web sites, published newspapers and diaries. Their truth and dependability to a great extent depends on the truth of the published stuffs.

Scope of Period

Since the survey focal point on fiscal crises period, the research worker faced trouble in taking the scope of period because fiscal crises sometimes occurred more than one twelvemonth. The research worker usage one twelvemonth daily market index in this survey, and the research worker feel ambiguity whether to take the first twelvemonth or the one twelvemonth before fiscal crises retrieve as scope of the period for this survey.

1.8 DEFINITION OF TERMS

1.8.1 Tax return

The addition or lossA of a security in a peculiar period. The return consists of theA incomeA and theA capital additions relativeA on anA investing. It is normally quoted as a per centum.

1.8.2 Hazard

The opportunity that an investing ‘s existent return will be different than expected. Risk includes the possibility of losing some or all of the original investing.

1.8.3 Property

The rights that one person has in lands or goods to the exclusion of all others ; rights gained from the ownership of wealth.

1.8.4 Stock

A type of security that signifies ownership in a corporation and represents a claim on portion of the corporation ‘s assets and net incomes.

1.8.5 Volatility

A statistical step of the scattering of returns for a given security or market index. Volatility can either be measured by utilizing the standard divergence or discrepancy between returns from that same security or market index

1.8.6 Capitalization

In finance, a procedure whereby awaited future income is converted to one ball amount capital value.

1.9 Summary

In monetary value find procedure, monetary value motions of stocks reflect the information flows of

direct investing by companies. In add-on, market efficiency is a pivot in finding whether the stock monetary values right reflect the cardinal monetary values of the implicit in assets. This nevertheless is under the premise that the market is affected by rational market participants who form rational outlooks of future positions and price reduction all market information into expected monetary values at the same time. On the other manus, it is widely known that crowding and positive feedback trading are possible causes of some phenomena in fiscal markets such as plus monetary value impulse, extra volatility and bubbles.

Then, research worker was contributed the statement of the research job, aim of the survey has specific, place the element range of the survey, depict the important of the survey can lend, and the key footings that used in this survey. Few economic variables are taken to prove whether there are any important correlativity between the dependant and independent variables. The dependant variable used in this survey is stock monetary value and the independent variables are recession, involvement rate and rising prices rate.

Chapter 2

LITERATURE REVIEW

Introduction

In this chapter, the research worker has searched some of research that is relevant to the subject survey. More surveies on the portfolio choice schemes utilizing other method such as robust, correlational method and etc. Less studied has be done for Sharpe, Jensen, Treynor and more over no surveies refering belongings choice schemes has been conducted late. As we know choosing the belongings stock need an analytical schemes because of immense investing will be injected to purchase the belongings. The hazard of the belongings investing is depends on the market growing among other sectors every bit good as the economic sector. By mensurating the belongings stocks public presentation, it will assist investors to do an accurate investing determination which companies in Malaysia will be selected as the best portfolio schemes. Other than that, it will give investors some clear image of the stocks risk degree to mensurate their hazard tolerance. By doing comparing of the surveies that had been conducted by some research workers, it will assist to work out the research job every bit good as meet the aims of the surveies.

.2.1 PREVIOUS STUDY

There are limited Numberss of literature available on belongingss stock choice in Malaysia utilizing Treynor, Alpha Jensen, Adjusted Alpha, Adjusted Jensen, Information Ratio and Simple Sharpe Portfolio Optimization. As we know investors will merely take the hazard based on their aims and hazard tolerance. The belongings stock is said to more hazardous when the hazard is higher and the return is lower. The more risk-averse persons should hold selected lower-volatility stocks. The anticipations of the preferable hazard home ground hypothesis are consistent with the observations by Dorn and Huberman ( 2009 ) which include: ( 1 ) These portfolios contain extremely similar stocks in footings of volatility. ( 2 ) When these stocks are sold they are replaced by stocks of similar volatility. Since portfolio volatility remains about the same after investors rearrange their.

Some of the surveies for belongingss made by other research workers is concentrating on the portfolio design for investing companies through scenario where conducted by Payam Hanafizadeh* , Abolfazl Kazazi and Azam Jalili Bolhasani ( 2008 ) . They found that The dynamicity of today ‘s environment in which organisations operate gives rise to many uncertainnesss. Consequently, the portfolio scheme public presentation of the state is impacted by the dynamicity of the environment. The chief aim of portfolio design is to find the right combination of profitable industries which enable the organisation to accomplish its outlooks of the investing scheme. The present fiscal methods for choosing portfolio have lost their efficiency in today ‘s unsure and agitated environment. The concern for better determination devising in portfolio variegation has received world-wide attending, particularly in the developed states. This is in realisation of the fact that investing scene ( belongings investing inclusive ) throughout the universe is characterized by hazard and uncertainness and disregarding them may convey hazard. Originating from the demand to turn to the job of hazard and uncertainness, the form of investing has changed well and investors have seen the safety facet of variegation as hazard may be reduced by a tradeoff with return.

In this survey we calculate the mean return, market return, beta and standard divergence. This hazard is derived from downside frequence, average downside divergence and downside magnitude, and DRO is to forestall the portfolio from often executing excessively ill ( Swisher and Kasten, 2005 ) . The investor ‘s tolerance for such hazard may be assessed based on how frequently and how much he/she might lose, and should such losingss occur, how long it will take the portfolio to retrieve. Following the DRO rule, a preferable scheme by investors in a downside market would be to merchandise often, in order to avoid a changeless losing run. This could besides bring forth a steady watercourse of hard currency flow even if additions are undistinguished. It is normal for investors to be wary of the unknown.

In similar mode, the thrust towards the integrating of quantitative schemes, as developed under Modern Portfolio Theory ( MPT ) , into belongings portfolio variegation and direction has increased. In the United States, United Kingdom, and Hong Kong, for illustration, surveies such as Adair, McGreal, and Webb ( 2006 ) , Lee ( 2005 ) , Liow, Ooi, and Gong ( 2005 ) Bond, Karol3a , and Sanders ( 2003 ) , Steinert and Crowe ( 2001 ) , Conover, Friday, and Sirmans ( 2002 ) Brown, Li, and Lusht ( 2000 ) , Cheng and Liang ( 2000 ) , Viezer ( 2000 ) Kuhle, and Walther ( 1987 ) , Mueller ( 1993 ) , Wilhams ( 1996 ) Miles and McCue ( 1982 ) , have evaluated and determined the benefits of assorted variegation schemes to their investors. These surveies have shown that different variegation schemes come with different portfolio benefits. Therefore, the inquiry of how best to apportion investing financess within existent estate portfolio to accomplish optimum return/risk public presentation is non equivocal to investors in these states.

Summary

In this chapter, show that the keys of literature reappraisal based on survey. There are includes determiners of belongingss stock choice by old survey. There are merely a little figure of international surveies about calculating on optimisation scheme that prove helpful as a guideline to this survey. The literature reappraisal in this survey was referred, research worker was used a secondary information. Secondary information for this research was gathered from text editions, diaries, and other mentions in the library. Based on the reappraisal of cardinal surveies, on portfolio of belongingss stock was positively related with Treynor, Jenson, Sharpe, Alpha, Information ration and adjusted Sharpe and Jensen Alpha it will assist to give clear thought for this survey.

Chapter 3

METHODOLOGY AND DATA

3.0 Introduction

In this chapter, it explains about the facets in the procedure and design of this survey. This involves the informations aggregation method and sample informations used in this survey every bit good as the development of the theoretical model. Besides that, type of survey, the clip skyline, and the unit of analysis will be described. As mentioned in chapter one, the chief aim of this survey was to place the public presentation of the belongingss stock in Malaysia whether outperform or underperform and to happen the belongingss stock that most stable. To accomplish the above aims, this survey will utilize six public presentation trial which is Treynor, Jensen, Alpha, Adjusted Sharpe, Adjusted Jensen Alpha and Information ratio.For each trial, there are 3 best stocks that will be selected and each company that their arrested development is below than 0.25 will non be chosen because of the significancy of the informations. While, methodological analysis that will be use in this research is Simple Sharp Portfolio Optimization.

3.1 DATA COLLECTION

Secondary informations is informations gathered through such existing beginnings. This survey was conducted based on secondary informations obtained from the Emerald, Yahoo Finance and Bursa Malaysia web site over five twelvemonth period from 2005 to 2010. Data refering on the Ordinary Least Square Regression that will affecting alpha, beta and arrested development. Companies ‘ shutting stock monetary values from twelvemonth 2005-2010 have been collected to happen companies return and besides with the market return. While Treasury Bills used to cipher companies ‘ hazard.

3.2 Sampling Frame

86 companies that will be trying frame. They are:

A & A ; M REALTY BHD

AMCORP PROPERTIES BHD

ASAS DUNIA BHD

ASIAN PAC HOLDING BHD

ASIAN PACIFIC LAND BHD

BANDAR RAYA DEVELOPMENT BHD

BCB BHD

BERJAYA ASSETS BERHAD

BERTAM ALLIANCE BHD

BINA DARULAMAN BHD

BOLTON BHD

COUNTRY HEIGHT HOLDING BHD

COUNTRY VIEW BHD

CRESCENDO CORPORATION BHD

DAIMAN DEVELOPMENT BHD

DAMANSARA REALTY BHD

DIJAYA CORPORATION BHD

EASTERN & A ; ORIENTAL BHD

ENCORP BHD

EQUINE CAPITAL BHD

EUPE CORPORATION BHD

FARLIM GROUP ( M ) BHD

FOCAL AIMS HOLDING BHD

GLOMAC BHD

GOLDEN PLUS HOLDING BHD

GROMUTUAL BHD

GUOCOLAND ( MALAYSIA ) BHD

HUA YANG BHD

HUNZA PROPERTIES BHD

I-BHD

IBRACO BHD

IGB CORPORATION

IJM LAND BHD

IVORY PROPERTIES GROUP BHD

KARAMBUNAI CORP BHD

KELADI MAJU BHD

KLCC PROPERTY HOLDINGS BHD

KRISASSETS HOLDINGS BHD

KSL HOLDINGS BHD

KUMPULAN HARTANAH SELANGOR BHD

LAND & A ; GENERAL BHD

LBI CAPITAL BHD

LBS BINA GROUP BHD

LIEN HOE CORPORATION BHD

MAGNA PRIMA BHD

MAH SING GROUP BHD

MAHAJAYA BHD

MAJUPERAK HOLDINGS BHD

MALAYSIA PACIFIC CORP BHD

MALTON BHD

MEDA INC. BHD

MENANG CORPORATION

MERGE HOUSING BHD

METRO KAJANG HOLDINGS BHD

MK LAND HOLDINGS BHD

MUI PROPERTIES BHD

MULPHA LAND BHD

MUTIARA GOODYEAR DEVELOPMENT BHD

NAIM HOLDINGS BHD

NILAI RESOURCES GROUP BHD

Oriental Interest BHD

OSK PROPERTY HOLDINGS BHD

PARAMOUNT CORPORATION BHD

PASDEC HOLDINGS BHD

PERDUREN ( M ) BHD

PETALING TIN BHD

PJ DEVELOPMENTS HOLDINGS BHD

PLENITUDE BHD

SAPURA RESOURCES BHD

SELANGOR DREDGING BHD

SELANGOR PROPERTIES BHD

SHL CONSOLIDATED BHD

SOUTH MALAYSIA INDUSTRIES BHD

SP SETIA BHD

SUNWAY CITY BHD

TAHPS GROUP BHD

TALAM CORPORATION BHD

TANCO HOLDINGS BHD

TEBRAU TEGUH BHD

TRIPLC BHD

UEM LAND HOLDING BHD

UNITED MALAYAN LAND BHD

Wing TAI MALAYSIA BHD

Y & A ; G CORPORATION BHD

YNH PROPERTY BHD

YTL LAND & A ; DEVELOPMENT B

3.3 Beginnings OF DATA

The information on monthly stock monetary value of belongings companies in Malaysia was collected from Bursa Malaysia website which provided information about the historical information of stock monetary value like opening monetary value, shuting monetary value and volume of stock. Besides that, informations for Treasury Bills and KLCI besides collected from Bursa Malaysia.

RESEARCH DESIGN

3.5.1 Purpose of the Study

The intent of this survey is to place the public presentation of the belongingss stock in Malaysia. Descriptive survey will be able to depict the features of the variable of the state of affairs. Beside that, this survey will assist others to do determination devising in funding and offer the thoughts for future survey and research.

3.5.2 Types of Probe

This survey involved the correlational survey types of probe. It is used to find the of import variable related with the aim of the survey. The of import variables are shuting stock monetary value, companies ‘ return and market return. Field surveies and field experiment will be conducted in this survey. Field surveies are correlational surveies that being done in this survey. Meanwhile, field experiments are surveies that will be conducted to set up cause and affect relationship by utilizing the same measuring in the market. The experiment done to set up the cause and affect of the surveies so that can do disciplinary action to do any determination in the investing.

3.5.3 Unit of Analysis

In this survey, the stock monetary value will be based on the money values. The stock monetary value for belongings companies has been selected from Bursa Malaysia web site as a dependant variable. The stock monetary value will be taken from 2005 until 2010 informations. Meanwhile Treasury Bills determined by per centum and KLCI will be determined by indexes.

3.5.4 Time Horizon

Cross-sectional surveies will be used in these surveies. Where ‘s monthly footing informations of belongingss company stock monetary value from 2005-2010 is used to happen out the public presentation of belongingss stock in Malaysia. Meanwhile for KLCI and Treasury measures informations besides taken for same old ages to do certain the truth of the consequence.

3.6 THEORETICAL FRAMEWORK

Property

3.7 DATA ANALYSIS AND TREATMENT

After all the informations and information had been gathered through the informations aggregation method, the procedure of analyzes a information and determination analysis is begin. Ordinary Least Square ( OLS ) Method is a method originated by Legendre, which refers to the procedure of gauging the unknown parametric quantities of a theoretical account by minimising the amount of squared differences between the ascertained values of a random variable and the values predicted by the theoretical account. If every observation is given equal weight so this is ordinary least squares.

Ordinary least square method is the arrested development that are run to acquire alpha and beta value.

Represent market return

Y= I± + I?x

Represent companies stock

There are six public presentation trial that will be used, which is:

Treynor Performance Measurement

-This theory explain and analyze the return in relation to market hazard, it mensurating the return adjusted with systematic hazard represent by Beta ( I? ) . The higher the ratio obtained, the better the public presentation of the fund.

Where: Rhode island is the fund return

Rf is Risk free rate of return

?i is the Beta

Jensen Alpha

– Jensen Alpha is used to find the unnatural return of a security or portfolio of securities over the theoretical expected return. The theoretical return is predicted by a market theoretical account, most normally the Capital Asset Pricing Model ( CAPM ) theoretical account.

where: Rhode island is the fund return

Rf is the hazard free rate

Rm is the market return

I? is the fund Beta

Sharpe Performance Measurement

-Sharpe step is the most widely used method to mensurate public presentation of stocks or financess. It measures the extra return per unit of hazard in a trading of financess.

Ri-Rf /I?i

Where: Roentgen is the fund return,

Rf is the hazard free rate of return,

I?i is the standard divergence of the plus extra return.

Information Ratio

-The Information ratio is a step of the risk-adjusted return of a fiscal security. It is defined as expected active return divided by tracking mistake, where active return is the difference between the return of the security and the return of a selected benchmark index, and tracking mistake is the standard divergence of the active return. The information ratio IR is:

Where: Roentgen is the fund return

Rb is the benchmark return

I± = E [ R a?’ Rb ] is the expected value of the active return,

I‰ = I? is the standard divergence of the active return, which is an alternate definition of the aforesaid trailing mistake.

Adjusted Jensen Alpha

-the portfolio is said to hold a just public presentation when alpha is zero or non significantly different from nothing. However this index can non be used to compare the public presentation of different portfolios with different degree of systematic hazard and hence the Adjusted Jensen Alpha was computed as follows:

Adjusted Sharpe

-The Sharp index uses standard divergence and a little figure of observations can make a prejudice. Jacobson and Korkie ( 1983 ) modified the Sharpe ‘s index to extinguish the prejudice. The Adjusted Sharpe Index is expressed as follows:

Sharpe optimisation uses a individual index theoretical account to bring forth discrepancy covariance structures.This theoretical account non merely allows one to find which securities are included in an optimum portfolio but besides how much to put in each. Furthermore, the technique allows the definition of a cut-off rate defined entirely in footings of the features of the single security, such that the impact on the optimum portfolio of the debut of any new security into the director ‘s determination set can rapidly and easy be seen.

3.8 Summary

In this chapter, it will supply the research design that will be used in this survey, reviews all parts of theoretical model and research methodological analysis will be utilizing in this survey. With theoretical model provides belongingss company stock monetary value, 6 public presentation trial and the stock choice. Although in portion of methodological analysis was describes how research attack is adopted in the survey, the informations that was collected for this survey and statistical methods to be usage in analysing the information. The survey aims to to place the public presentation of the belongingss stock in Malaysia. This research will be done in conformity to the aim where to cognize the belongingss stock that most stable and besides the public presentation of Malaysia belongingss stock. This information will possibly can be used by the hereafter research worker and besides client for them to do some funding and investing determinations. Since survey focal points on the information from 2005 until 2010, if would give a better image on the determination of the client to do the right pick on their funding planning.

Chapter 4

FINDINGS AND ANALYSIS

Introduction

The old chapters have discussed the aim of the survey, reviewed anterior literature related to the survey and stipulate the research design that being used in this survey. As mentioned in Chapter One, the chief aim of this survey is to place the public presentation of the belongingss stock in Malaysia. Then in Chapter Two, discusses the old survey by another research workers that related to this survey. Meanwhile in old chapter, it highlights the research design that being used in this survey. Therefore, this chapter will be discuss and analysis the determination from research done.

DESCRIPTIVE ANALYSIS

Property companies that listed in Main Market is 86 companies. From these 86 companies, 7 of them is rejected. The ground of rejected is because of all of them is do non run into the demand which is in footings of period of old ages. For this survey, it used 6 old ages informations which is from 2005-2010. 6 companies that rejected is:

BERTAM ALLIANCE BHD 2010

ENCORP BHD 2006-2010

GOLDEN PLUS HOLDING BHD 2005-2009

IGB CORPORATION 2006-2010

IVORY PROPERTIES GROUP BHD 2010

TRIPLC BHD 2006-2010

UEM LAND HOLDING BHD 2008-2010

After cull that 7 companies, there are 79 companies left. Another 79 companies is:

A & A ; M REALTY BHD

AMCORP PROPERTIES BHD

ASAS DUNIA BHD

ASIAN PAC HOLDING BHD

ASIAN PACIFIC LAND BHD

BANDAR RAYA DEVELOPMENT BHD

BCB BHD

BERJAYA ASSETS BERHAD

BINA DARULAMAN BHD

BOLTON BHD

COUNTRY HEIGHT HOLDING BHD

COUNTRY VIEW BHD

CRESCENDO CORPORATION BHD

DAIMAN DEVELOPMENT BHD

DAMANSARA REALTY BHD

DIJAYA CORPORATION BHD

EASTERN & A ; ORIENTAL BHD

EQUINE CAPITAL BHD

EUPE CORPORATION BHD

FARLIM GROUP ( M ) BHD

FOCAL AIMS HOLDING BHD

GLOMAC BHD

GROMUTUAL BHD

GUOCOLAND ( MALAYSIA ) BHD

HUA YANG BHD

HUNZA PROPERTIES BHD

I-BHD

IBRACO BHD

IJM LAND BHD

KARAMBUNAI CORP BHD

KELADI MAJU BHD

KLCC PROPERTY HOLDINGS BHD

KRISASSETS HOLDINGS BHD

KSL HOLDINGS BHD

KUMPULAN HARTANAH SELANGOR BHD

LAND & A ; GENERAL BHD

LBI CAPITAL BHD

LBS BINA GROUP BHD

LIEN HOE CORPORATION BHD

MAGNA PRIMA BHD

MAH SING GROUP BHD

MAHAJAYA BHD

MAJUPERAK HOLDINGS BHD

MALAYSIA PACIFIC CORP BHD

MALTON BHD

MEDA INC. BHD

MENANG CORPORATION

MERGE HOUSING BHD

METRO KAJANG HOLDINGS BHD

MK LAND HOLDINGS BHD

MUI PROPERTIES BHD

MULPHA LAND BHD

MUTIARA GOODYEAR DEVELOPMENT BHD

NAIM HOLDINGS BHD

NILAI RESOURCES GROUP BHD

Oriental Interest BHD

OSK PROPERTY HOLDINGS BHD

PARAMOUNT CORPORATION BHD

PASDEC HOLDINGS BHD

PERDUREN ( M ) BHD

PETALING TIN BHD

PJ DEVELOPMENTS HOLDINGS BHD

PLENITUDE BHD

SAPURA RESOURCES BHD

SELANGOR DREDGING BHD

SELANGOR PROPERTIES BHD

SHL CONSOLIDATED BHD

SOUTH MALAYSIA INDUSTRIES BHD

SP SETIA BHD

SUNWAY CITY BHD

TAHPS GROUP BHD

TALAM CORPORATION BHD

TANCO HOLDINGS BHD

TEBRAU TEGUH BHD

UNITED MALAYAN LAND BHD

Wing TAI MALAYSIA BHD

Y & A ; G CORPORATION BHD

YNH PROPERTY BHD

YTL LAND & A ; DEVELOPMENT BHD

Arrested development

R2= 0.25

Coefficient of finding ( R2 ) is a step of how much the variableness in the result is accounted for by the variables. The higher the value RA? , the higher explanatory power of the estimated equation and it is more accurate for calculating intent. The value of R-square ( R2 ) will indicates the proportion of the entire fluctuation in the independent variable. The higher the value of R2, the better the account will be. For this survey, ( R2 ) is standardized at 0.25. This means there is about 25 % of public presentation of the belongings companies is explained by variables and another 75 % indicates that values of ( R2 ) are explained by other variables that are needed to suit the information.

After acquire all the informations, the following measure is to happen alpha ( I± ) , beta ( I? ) and coefficient of finding ( R2 ) . Coefficient of finding ( R2 ) of each companies will find whether that companies to be calculated on public presentation trial or non.

Company

Alpha

Beta

R2

A & A ; M REALTY BHD

-0.011709

1.6165071

0.1806471

AMCORP PROPERTIES BHD

0.024185

1.832337

0.076163

ASAS DUNIA BHD

-0.004193

1.4013229

0.2249215

ASIAN PAC HOLDING BHD

-0.00846

1.615374

0.181198

ASIAN PACIFIC LAND BHD

0.003693

1.313661

0.142521

BANDAR RAYA DEVELOPMENT BHD

-0.00008494

1.75872436

0.256958329

BCB BHD

-0.00656

0.576415

0.079681

BERJAYA ASSETS BERHAD

-0.008

1.738797

0.215104

BINA DARULAMAN BHD

-0.00663

1.362501

0.327855

BOLTON BHD

-0.00205

0.916983

0.148341

COUNTRY HEIGHT HOLDING BHD

-0.01177

1.310265

0.268677

COUNTRY VIEW BHD

0.001944

-0.42086

0.009374

CRESCENDO CORPORATION BHD

0.00008707

0.805557732

0.149644214

DAIMAN DEVELOPMENT BHD

0.000331

0.710572

0.218304

DAMANSARA REALTY BHD

0.030109

2.849969

0.152127

DIJAYA CORPORATION BHD

-0.00257

0.976458

0.168312

EASTERN & A ; ORIENTAL BHD

0.005258

1.608968

0.17898

EQUINE CAPITAL BHD

0.000836

2.376771

0.134916

EUPE CORPORATION BHD

-0.00868

1.751167

0.270357

FARLIM GROUP ( M ) BHD

0.0004

0.376905

0.017571

FOCAL AIMS HOLDING BHD

-0.00183

1.030926

0.066354

GLOMAC BHD

-0.01062

1.670084

0.396996

GROMUTUAL BHD

-0.01254

1.080923

0.10847

GUOCOLAND ( MALAYSIA ) BHD

0.007635

1.566786

0.195309

HUA YANG BHD

0.00161

1.209232

0.105827

HUNZA PROPERTIES BHD

-0.00215

0.868497

0.205319

I-BHD

0.001236

0.575194

0.051236

IBRACO BHD

-0.000011602

0.844474657

0.07037675

IJM LAND BHD

0.011394

2.736317

0.275488

KARAMBUNAI CORP BHD

0.023599

2.012129

0.095853

KELADI MAJU BHD

-0.00348

1.020085

0.13542

KLCC PROPERTY HOLDINGS BHD

0.003477

0.638317

0.305341

KRISASSETS HOLDINGS BHD

0.001442

0.367409

0.083746

KSL HOLDINGS BHD

-0.01052

1.628745

0.430357

KUMPULAN HARTANAH SELANGOR BHD

0.010837

2.086687

0.08993

LAND & A ; GENERAL BHD

0.007119

1.730359

0.198247

LBI CAPITAL BHD

-0.00256

0.858395

0.170316

LBS BINA GROUP BHD

-0.0123

1.298137

0.190835

LIEN HOE CORPORATION BHD

-0.00176

1.291239

0.19107

MAGNA PRIMA BHD

-0.00659

1.649206

0.132672

MAH SING GROUP BHD

0.007049

0.853462

0.153573

MAHAJAYA BHD

-0.00904

0.681616

0.048793

MAJUPERAK HOLDINGS BHD

0.056646

1.932909

0.029682

MALAYSIA PACIFIC CORP BHD

0.004835

1.382703

0.105187

MALTON BHD

0.005431

0.056238

0.00043

MEDA INC. BHD

0.008527

1.367817

0.117397

MENANG CORPORATION

0.013151

1.385608

0.040159

MERGE HOUSING BHD

-0.01673

0.55159

0.074499

METRO KAJANG HOLDINGS BHD

-0.00295

1.20647

0.347225

MK LAND HOLDINGS BHD

-0.02667

2.377639

0.328176

MUI PROPERTIES BHD

-0.00994

1.136432

0.157573

MULPHA LAND BHD

0.0032

1.656726

0.125541

MUTIARA GOODYEAR DEVELOPMENT BHD

0.002593

0.917132

0.0902

NAIM HOLDINGS BHD

-0.00301

1.131317

0.21343

NILAI RESOURCES GROUP BHD

0.000752

1.013022

0.157063

Oriental Interest BHD

-0.00257

0.670229

0.146989

OSK PROPERTY HOLDINGS BHD

-0.00844

1.729397

0.265635

PARAMOUNT CORPORATION BHD

0.005832

0.666891

0.234105

PASDEC HOLDINGS BHD

-0.00533

1.464054

0.292114

PERDUREN ( M ) BHD

0.005934

0.3657

0.008715

PETALING TIN BHD

0.013373

2.02623

0.103769

PJ DEVELOPMENTS HOLDINGS BHD

0.002505

1.271719

0.298144

PLENITUDE BHD

0.004396

1.239212

0.221082

SAPURA RESOURCES BHD

0.008774

2.225153

0.232492

SELANGOR DREDGING BHD

0.003872

1.38801

0.27392

SELANGOR PROPERTIES BHD

-0.0014

1.901514

0.344756

SHL CONSOLIDATED BHD

-0.00345

0.626721

0.05596

SOUTH MALAYSIA INDUSTRIES BHD

-0.00992

1.757348

0.333131

SP SETIA BHD

-0.00093

1.394309

0.310626

SUNWAY CITY BHD

0.007169

1.711271

0.311874

TAHPS GROUP BHD

0.006229

0.728796

0.175492

TALAM CORPORATION BHD

-0.02278

1.954538

0.120382

TANCO HOLDINGS BHD

0.011051

3.69554

0.294081

TEBRAU TEGUH BHD

0.023772

1.829497

0.111851

UNITED MALAYAN LAND BHD

0.003287

1.26701

0.243409

Wing TAI MALAYSIA BHD

0.009585

1.740851

0.259671

Y & A ; G CORPORATION BHD

-0.01115

0.689969

0.029925

YNH PROPERTY BHD

-0.00279

1.537911

0.319422

YTL LAND & A ; DEVELOPMENT BHD

-0.0014

1.901514

0.344756

As the consequence, company that have ( R2 ) above 0.25 is 22 companies. There are:

BANDAR RAYA DEVELOPMENT BHD

BINA DARULAMAN BHD

COUNTRY HEIGHT HOLDING BHD

EUPE CORPORATION BHD

GLOMAC BHD

IJM LAND BHD

KLCC PROPERTY HOLDINGS BHD

KSL HOLDINGS BHD

METRO KAJANG HOLDINGS BHD

MK LAND HOLDINGS BHD

OSK PROPERTY HOLDINGS BHD

PASDEC HOLDINGS BHD

PJ DEVELOPMENTS HOLDINGS BHD

SELANGOR DREDGING BHD

SELANGOR PROPERTIES BHD

SOUTH MALAYSIA INDUSTRIES BHD

SP SETIA BHD

SUNWAY CITY BHD

TANCO HOLDINGS BHD

Wing TAI MALAYSIA BHD

YNH PROPERTY BHD

YTL LAND & A ; DEVELOPMENT BHD

4.3 PERFORMANCE Trial

4.3.1 SHARPE RATIO

4.3.2 TREYNOR RATIO

4.3.3 JENSEN ALPHA RATIO

4.3.4 ADJUSTED SHARPE

4.3.5 ADJUSTED JENSEN ALPHA

4.3.6 INFORMATION RATIO

Table 4.3.1 SHARPE RATIO

Ranking

Company

SHARPE RATIO

%

Rm ( % )

Performance

1

IJM LAND BHD

0.112801636

11.28

0.17795

Outperform

2

TANCO HOLDINGS BHD

0.111405496

11.14

0.17795

Outperform

3

Wing TAI MALAYSIA BHD

0.105509433

10.55

0.17795

Outperform

4

SUNWAY CITY BHD

0.09761121

9.76

0.17795

Outperform

5

SELANGOR DREDGING BHD

0.061294609

6.12

0.17795

Outperform

6

PJ DEVELOPMENTS HOLDINGS BHD

0.046912674

4.69

0.17795

Outperform

7

SELANGOR PROPERTIES BHD

0.042138932

4.21

0.17795

Outperform

8

YTL LAND & A ; DEVELOPMENT BHD

0.042138932

4.21

0.17795

Outperform

9

BANDAR RAYA DEVELOPMENT BHD

0.040441883

4.04

0.17795

Outperform

10

SP SETIA BHD

0.021051018

2.1

0.17795

Outperform

11

YNH PROPERTY BHD

0.013428726

1.34

0.17795

Outperform

12

KLCC PROPERTY HOLDINGS BHD

0.011679316

1.16

0.17795

Outperform

13

PASDEC HOLDINGS BHD

-0.01324075

-1.32

0.17795

Underperform

14

METRO KAJANG HOLDINGS BHD

-0.01413409

-1.41

0.17795

Underperform

15

OSK PROPERTY HOLDINGS BHD

-0.01736321

-1.73

0.17795

Underperform

16

EUPE CORPORATION BHD

-0.01775183

-1.77

0.17795

Underperform

17

SOUTH MALAYSIA INDUSTRIES BHD

-0.02865683

-2.86

0.17795

Underperform

18

BINA DARULAMAN BHD

-0.03563885

-3.56

0.17795

Underperform

19

GLOMAC BHD

-0.04516417

-4.51

0.17795

Underperform

20

KSL HOLDINGS BHD

-0.05034928

-5.03

0.17795

Underperform

21

COUNTRY HEIGHT HOLDING BHD

-0.08441884

-8.44

0.17795

Underperform

22

MK LAND HOLDINGS BHD

-0.0863866

-8.63

0.17795

Underperform

To cipher Rm= rp-rfr /

=0.008077-0.008 / 0.04327

=0.0017795 0.17795 %

Table 4.3.2 TREYNOR RATIO

Ranking

Company

TREYNOR RATIO

%

Rm ( % )

Performance

1

IJM LAND BHD

0.009299237

0.929

0.0077

OUTPERFORM

2

Wing TAI MALAYSIA BHD

0.008959066

0.895

0.0077

OUTPERFORM

3

TANCO HOLDINGS BHD

0.008889065

0.888

0.0077

OUTPERFORM

4

SUNWAY CITY BHD

0.007562981

0.756

0.0077

OUTPERFORM

5

SELANGOR DREDGING BHD

0.005067495

0.506

0.0077

OUTPERFORM

6

PJ DEVELOPMENTS HOLDINGS BHD

0.003717578

0.371

0.0077

OUTPERFORM

7

BANDAR RAYA DEVELOPMENT BHD

0.003452098

0.345

0.0077

OUTPERFORM

8

SELANGOR PROPERTIES BHD

0.003105353

0.31

0.0077

OUTPERFORM

9

YTL LAND & A ; DEVELOPMENT BHD

0.003105353

0.31

0.0077

OUTPERFORM

10

SP SETIA BHD

0.00163432

0.163

0.0077

OUTPERFORM

11

YNH PROPERTY BHD

0.001028101

0.102

0.0077

OUTPERFORM

12

KLCC PROPERTY HOLDINGS BHD

0.000914551

0.091

0.0077

OUTPERFORM

13

METRO KAJANG HOLDINGS BHD

-0.001037876

-0.103

0.0077

UNDERPERFORM

14

PASDEC HOLDINGS BHD

-0.001060033

-0.106

0.0077

UNDERPERFORM

15

OSK PROPERTY HOLDINGS BHD

-0.001457708

-0.145

0.0077

UNDERPERFORM

16

EUPE CORPORATION BHD

-0.001477261

-0.147

0.0077

UNDERPERFORM

17

SOUTH MALAYSIA INDUSTRIES BHD

-0.002148344

-0.214

0.0077

UNDERPERFORM

18

BINA DARULAMAN BHD

-0.002693185

-0.269

0.0077

UNDERPERFORM

19

GLOMAC BHD

-0.003101589

-0.31

0.0077

UNDERPERFORM

20

KSL HOLDINGS BHD

-0.003320946

-0.332

0.0077

UNDERPERFORM

21

MK LAND HOLDINGS BHD

-0.006524936

-0.652

0.0077

UNDERPERFORM

22

COUNTRY HEIGHT HOLDING BHD

-0.007047048

-0.704

0.0077

UNDERPERFORM

To cipher Rm= rp-rfr/I?p

=0.008077-0.008/1

=0.000077 0.0077 %

Table 4.3.3 JENSEN ALPHA RATIO

Ranking

Company

JENSEN ALPHA

%

Rm ( % )

Performance

1

TANCO HOLDINGS BHD

0.033

3.3

0

OUTPERFORM

2

IJM LAND BHD

0.025

2.5

0

OUTPERFORM

3

Wing TAI MALAYSIA BHD

0.016

1.6

0

OUTPERFORM

4

SUNWAY CITY BHD

0.013

1.3

0

OUTPERFORM

5

SELANGOR DREDGING BHD

0.007

0.7

0

OUTPERFORM

6

BANDAR RAYA DEVELOPMENT BHD

0.006

0.6

0

OUTPERFORM

7

SELANGOR PROPERTIES BHD

0.006

0.6

0

OUTPERFORM

8

YTL LAND & A ; DEVELOPMENT

BHD

0.006

0.6

0

OUTPERFORM

9

PJ DEVELOPMENTS HOLDINGS BHD

0.005

0.5

0

OUTPERFORM

10

SP SETIA BHD

0.002

0.2

0

OUTPERFORM

11

YNH PROPERTY BHD

0.002

0.2

0

OUTPERFORM

12

KLCC PROPERTY HOLDINGS BHD

0.001

0.1

0

OUTPERFORM

13

METRO KAJANG HOLDINGS BHD

-0.001

-0.1

0

UNDERPERFORM

14

PASDEC HOLDINGS BHD

-0.002

-0.2

0

UNDERPERFORM

15

EUPE CORPORATION BHD

-0.003

-0.3

0

UNDERPERFORM

16

OSK PROPERTY HOLDINGS BHD

-0.003

-0.3

0

UNDERPERFORM

17

BINA DARULAMAN BHD

-0.004

-0.4

0

UNDERPERFORM

18

SOUTH MALAYSIA INDUSTRIES BHD

-0.004

-0.4

0

UNDERPERFORM

19

GLOMAC BHD

-0.005

-0.5

0

UNDERPERFORM

20

KSL HOLDINGS BHD

-0.005

-0.5

0

UNDERPERFORM

21

COUNTRY HEIGHT HOLDING BHD

-0.009

-0.9

0

UNDERPERFORM

22

MK LAND HOLDINGS BHD

-0.016

-1.6

0

UNDERPERFORM

To cipher Rm=

Rp-rfr =I±p+I?p ( rm-rfr )

Table 4.3.4 ADJUSTED SHARPE

Ranking

Company

ADJUSTED SHARPE

%

1

IJM LAND BHD

0.111638733

11.16

2

TANCO HOLDINGS BHD

0.110256985

11.02

3

Wing TAI MALAYSIA BHD

0.104421707

10.44

4

SUNWAY CITY BHD

0.096604908

9.66

5

SELANGOR DREDGING BHD

0.060662706

6.06

6

PJ DEVELOPMENTS HOLDINGS BHD

0.046429038

4.64

7

SELANGOR PROPERTIES BHD

0.04170451

4.17

8

YTL LAND & A ; DEVELOPMENT BHD

0.04170451

4.17

9

BANDAR RAYA DEVELOPMENT BHD

0.040024956

4

10

SP SETIA BHD

0.020833997

2.08

11

YNH PROPERTY BHD

0.013290286

1.32

12

KLCC PROPERTY HOLDINGS BHD

0.011558911

1.15

13

PASDEC HOLDINGS BHD

-0.013104247

-1.31

14

METRO KAJANG HOLDINGS BHD

-0.01398838

-1.39

15

OSK PROPERTY HOLDINGS BHD

-0.017184207

-1.71

16

EUPE CORPORATION BHD

-0.017568819

-1.75

17

SOUTH MALAYSIA INDUSTRIES BHD

-0.0283614

-2.83

18

BINA DARULAMAN BHD

-0.035271438

-3.52

19

GLOMAC BHD

-0.044698559

-4.46

20

KSL HOLDINGS BHD

-0.049830218

-4.98

21

COUNTRY HEIGHT HOLDING BHD

-0.083548541

-8.35

22

MK LAND HOLDINGS BHD

-0.085496019

-8.54

Table 4.3.5 ADJUSTED JENSEN ALPHA

Ranking

Company

ADJUSTED JENSEN ALPHA

%

1

Wing TAI MALAYSIA BHD

0.005505658

0.55

2

KLCC PROPERTY HOLDINGS BHD

0.005446524

0.544

3

SUNWAY CITY BHD

0.004189487

0.418

4

IJM LAND BHD

0.00416393

0.416

5

TANCO HOLDINGS BHD

0.002990316

0.299

6

SELANGOR DREDGING BHD

0.002789325

0.278

7

PJ DEVELOPMENTS HOLDINGS BHD

0.001969636

0.196

8

SP SETIA BHD

-0.000670044

-0.07

9

SELANGOR PROPERTIES BHD

-0.000738677

-0.07

10

YTL LAND & A ; DEVELOPMENT BHD

-0.000738677

-0.07

11

YNH PROPERTY BHD

-0.001815243

-0.18

12

METRO KAJANG HOLDINGS BHD

-0.00244355

-0.24

13

PASDEC HOLDINGS BHD

-0.003639374

-0.36

14

BINA DARULAMAN BHD

-0.004862794

-0.49

15

OSK PROPERTY HOLDINGS BHD

-0.004880497

-0.49

16

EUPE CORPORATION BHD

-0.004957904

-0.5

17

SOUTH MALAYSIA INDUSTRIES BHD

-0.005645151

-0.56

18

GLOMAC BHD

-0.006359097

-0.64

19

KSL HOLDINGS BHD

-0.006456144

-0.65

20

COUNTRY HEIGHT HOLDING BHD

-0.008981166

-0.9

21

MK LAND HOLDINGS BHD

-0.011216538

-1.12

22

BANDAR RAYA DEVELOPMENT BHD

-4.83E-05

-483

TABLE 4.3.6 INFORMATION RATIO

Ranking

Company

INFORMATION RATIO

%

1

KLCC PROPERTY HOLDINGS BHD

20.00661526

20

2

METRO KAJANG HOLDINGS BHD

11.28770778

11.28

3

PJ DEVELOPMENTS HOLDINGS BHD

9.922905917

9.92

4

BINA DARULAMAN BHD

9.712271341

9.71

5

KSL HOLDINGS BHD

9.308468731

9.3

6

SP SETIA BHD

9.237980095

9.23

7

COUNTRY HEIGHT HOLDING BHD

9.142670116

9.14

8

GLOMAC BHD

8.719098351

8.719

9

SELANGOR DREDGING BHD

8.714375187

8.714

10

PASDEC HOLDINGS BHD

8.531715084

8.53

11

YNH PROPERTY BHD

8.493133911

8.49

12

SOUTH MALAYSIA INDUSTRIES BHD

7.590433081

7.59

13

SUNWAY CITY BHD

7.542023023

7.54

14

SELANGOR PROPERTIES BHD

7.136296825

7.13

15

YTL LAND & A ; DEVELOPMENT BHD

7.136296825

7.13

16

OSK PROPERTY HOLDINGS BHD

6.887549781

6.88

17

EUPE CORPORATION BHD

6.862119304

6.86

18

Wing TAI MALAYSIA BHD

6.764987563

6.76

19

BANDAR RAYA DEVELOPMENT BHD

6.661169023

6.66

20

MK LAND HOLDINGS BHD

5.568321143

5.56

21

IJM LAND BHD

4.433040226

4.43

22

TANCO HOLDINGS BHD

3.391349623

3.39

After calculate all the ratio, 3 best stock from each method that be chosen to be usage in Simple Sharpe Portfolio Optimization. The same stock that appeared in top three of 6 ratio calculated as one. Company that be chosen is:

IJM Land Bhd

Tanco Retentions Bhd

Flying Tai Malaysia Bhd

KLCC Property Holdings Bhd

Metro Kajang Holdings Bhd

PJ Developments Holdings Bhd

Sunway City Bhd

4.4 SIMPLE SHARPE PORTFOLIO OPTIMIZATION

Stairss in Simple Sharpe Portfolio Optimization:

Calculate the extra return-to-beta ratio for each stock and rank from the highest to lowest.

Establishing a C-value. The optimal portfolio consists of stocks which a c-value is lower than a peculiar cutoff point. The cutoff point is determined by looking at the highest degree Celsius.

Once we know which securities are to be included in the optimal potfolio, we must cipher the per centum invested in each security.

A Company

Tax return

A

A

Beta

A

A

Residual

Mistake

A

Releasing factor

A

A

Excess

return ( Ri-Rf )

A

Ri-rf/ beta

( Excess return to beta ratio )

A

A

IJM Land Bhd

0.033493906

2.736317146

0.0509

0.008

0.32693906

0.12

Tanco Retentions Bhd

0.040898146

3.695540475

0.0869

0.008

0.32898146

0.0890212

Flying Tai Malaysia Bhd

0.023644643

1.740850818

0.0219

0.008

0.015644643

0.00898678

KLCC Property Holdings Bhd

0.008632019

0.638316551

0.0025

0.008

0.000632019

0.00099013

Metro Kajang Holdings Bhd

0.006796079

1.206470492

0.0078

0.008

-0.001203921

-0.00099789

PJ Developments Holdings Bhd

0.012775961

1.271719305

0.0102

0.008

0.004775961

0.37382401

Sunway City Bhd

0.020990557

1.711271054

0.0176

0.008

0.012990557

0.00759117

Table 4.4.1 TO FIND RANKING BY CALCULATING EXCESS RETURN TO BETA RATIO

Ranking

PJ Developments Holdings Bhd

IJM Land Bhd

Tanco Retentions Bhd

Flying Tai Malaysia Bhd

Sunway City Bhd

KLCC Property Holdings Bhd

Metro Kajang Holdings Bhd

After rank

Company

Excess Return,

Beta, I?

Residual Error,

excess*beta/ stderror

accumulate

PJ Developments Holdings Bhd

0.004775961

1.271719305

0.0102

0.595459

0.595459

IJM Land Bhd

0.32693906

2.736317146

0.0509

17.57581445

18.17127345

Tanco Retentions Bhd

0.32898146

3.695540475

0.0869

13.99038321

32.16165666

Flying Tai Malaysia Bhd

0.015644643

1.740850818

0.0219

1.24360683

33.40526349

Sunway City Bhd

0.012990557

1.711271054

0.0176

1.263088873

34.66835236

KLCC Property Holdings Bhd

0.000632019

0.638316551

0.0025

0.161371275

34.82972364

Metro Kajang Holdings Bhd

-0.001203921

1.206470492

0.0078

-0.186217328

34.64350631

accumulate

numerator

denumerator1

1+j

c-value

124.678363

124.6783632

0.001114874

0.233434427

1.233434427

0.000903878

147.100816

271.7791787

0.034021948

0.508850254

1.508850254

0.02254826

157.157876

428.9370544

0.060216045

0.803095844

1.803095844

0.03339592

138.381807

567.3188612

0.062544441

1.062187133

2.062187133

0.030329178

166.389126

733.7079873

0.064909313

1.373716329

2.373716329

0.027345017

162.979208

896.687195

0.067930657

1.678861158

2.678861158

0.025358036

186.611673

1083.298867

0.067582003

2.028252886

3.028252886

0.02231716

Table 4.4.2 TO FIND C-VALUE

C-value is 0.03339592 which is from Tanco Holdings Bhd

Company above than Tanco Holdings Bhd in their extra return to beta ratio will be chosen

To be included under portfolio:

Company

Beta

A

Residual

ratio

A

A

A

Mistake

A

PJ Developments Holdings Bhd

1.271719305

A

0.0102

0.373824012

IJM Land Bhd

2.736317146

A

0.0509

0.12

Tanco Retentions Bhd

3.695540475

A

0.0869

0.089021203

A

A

A

A

A

A

A

A

A

A

ratio-

error*f

Zi

Badger state

Percentage

cutoffpoint

A

A

A

A

0.340428092

0.00347237

366.2399378

0.208655786

20.86557864

0.0861

0.00438175

624.48016

0.35578151

35.57815103

0.0556

0.00483384

764.51490

0.435562703

43.55627033

A

A

A

A

A

A

Omega

1755.23499

1

100

Table 4.4.3 TO FIND Percentage

From the above tabular array, by comparing per centum invested in three stocks, we can reason that Tanco Holdings Bhd is the best stock followed by IJM Land Bhd and PJ Development Holdings Bhd.

Chapter 5

CONCLUSION AND RECOMMENDATION

5.0 Decision

As a decision, we can reason that merely 12 from 86 belongings companies in Malaysia was outperform from period 2005-2010. By mentioning to the statistic, it shows that chance to do a net income from belongings stock is merely 13.95 % . Investor need to do a deep research before they make investing in belongings sector because the opportunities for them to lose their money is high.

But, for twelvemonth 2011 there must be some alterations. Government encourage belongings sector by injected immense investing. Committedness from authorities to heighten employment chance and for farther economic system enlargement shows that belongings stock will go a good investing for an investor.

In add-on, due to Sarawak Election, belongings sector is said to be most beneficiary sector because it included in one of authorities ‘s Economy Transformation Plan ( ETP ) . More edifices will be built up to better the criterion life every bit good as to make more occupation chance to the citizen. Possibly in following few old ages, Malayan economic system will be every bit good as other good developed state and one of large subscriber is from belongings sector.

5.1 Recommendation

Since the research is discoursing about 6 public presentation trial and monthly informations to analyze public presentation of the stock, it is recommended to the hereafter research worker to analyze in deep about others method such as event survey that use day-to-day informations that will give more clear information towards the stock public presentation.

Another utile subject for future research would be to compare how the value stocks perform during market stable versus recession, and the findings would be the best as a complementary of this research every bit good.

Other than that, we besides recommend for future research worker to do comparing with another sectors such as building sector. By making comparing, we can see the market motion between two sector and their relationship with market return. Comparison between two sector will assist future researcher more thoughts about stock public presentation.