An investigation of shariah penny stocks’ performance and its determinants: Evidence from Bursa Malaysia

Since the introduction of Shariah status company in Bursa Malaysia in 1997, the demand for Shariah compliant investment has been increased. However, the limitations in Shariah compliant investment create worries and doubtfulness among the investors whether the Shariah compliant stocks performance ca...

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Main Authors:	Che Ismail, Che Muhamad Hafiz, Adewale, Abideen Adeyemi, Haron, Razali
Format:	Conference or Workshop Item
Language:	English
Published:	2017
Subjects:	HG4501 Stocks, investment, speculation
Online Access:	http://irep.iium.edu.my/59963/ http://irep.iium.edu.my/59963/12/59963-An%20Investigation%20of%20Shariah%20Penny%20Stocks%E2%80%99%20Performance.pdf

id	iium-59963
recordtype	eprints
spelling	iium-599632017-12-13T02:19:55Z http://irep.iium.edu.my/59963/ An investigation of shariah penny stocks’ performance and its determinants: Evidence from Bursa Malaysia Che Ismail, Che Muhamad Hafiz Adewale, Abideen Adeyemi Haron, Razali HG4501 Stocks, investment, speculation Since the introduction of Shariah status company in Bursa Malaysia in 1997, the demand for Shariah compliant investment has been increased. However, the limitations in Shariah compliant investment create worries and doubtfulness among the investors whether the Shariah compliant stocks performance can outperform the Non Shariah compliant stocks and the most important, maximizing the profit. Hence, this study is conducted using 40 Shariah and 40 non Shariah penny stocks as the samples. Then, technical analysis is applied to determine the market timing. From the technical analysis on Kuala Lumpur Composite Index (KLCI), the period chosen from April 2009 to July 2017. This study investigates about the significant differences between risk and return. By using independent sample T test for parametric data and Mann Whitney U test for non-parametric data, the result shows that there are no significant difference in terms of risk and return between Shariah penny stock portfolio and Non Shariah penny stock portfolio. Then, risk adjusted return measurements; Sharpe Ratio, Treynor Ratio and Jensen’s Alpha are employed to calculate risk adjusted return. From the result, Shariah penny stocks portfolio is better in terms of risk adjusted return ratios compared to the conventional portfolio. 2017 Conference or Workshop Item NonPeerReviewed application/pdf en http://irep.iium.edu.my/59963/12/59963-An%20Investigation%20of%20Shariah%20Penny%20Stocks%E2%80%99%20Performance.pdf Che Ismail, Che Muhamad Hafiz and Adewale, Abideen Adeyemi and Haron, Razali (2017) An investigation of shariah penny stocks’ performance and its determinants: Evidence from Bursa Malaysia. In: International Islamic Fund And Wealth Management Forum (IIFWMF), 2nd-3rd May 2017, Kuala Lumpur. (Unpublished)
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HG4501 Stocks, investment, speculation
spellingShingle	HG4501 Stocks, investment, speculation Che Ismail, Che Muhamad Hafiz Adewale, Abideen Adeyemi Haron, Razali An investigation of shariah penny stocks’ performance and its determinants: Evidence from Bursa Malaysia
description	Since the introduction of Shariah status company in Bursa Malaysia in 1997, the demand for Shariah compliant investment has been increased. However, the limitations in Shariah compliant investment create worries and doubtfulness among the investors whether the Shariah compliant stocks performance can outperform the Non Shariah compliant stocks and the most important, maximizing the profit. Hence, this study is conducted using 40 Shariah and 40 non Shariah penny stocks as the samples. Then, technical analysis is applied to determine the market timing. From the technical analysis on Kuala Lumpur Composite Index (KLCI), the period chosen from April 2009 to July 2017. This study investigates about the significant differences between risk and return. By using independent sample T test for parametric data and Mann Whitney U test for non-parametric data, the result shows that there are no significant difference in terms of risk and return between Shariah penny stock portfolio and Non Shariah penny stock portfolio. Then, risk adjusted return measurements; Sharpe Ratio, Treynor Ratio and Jensen’s Alpha are employed to calculate risk adjusted return. From the result, Shariah penny stocks portfolio is better in terms of risk adjusted return ratios compared to the conventional portfolio.
format	Conference or Workshop Item
author	Che Ismail, Che Muhamad Hafiz Adewale, Abideen Adeyemi Haron, Razali
author_facet	Che Ismail, Che Muhamad Hafiz Adewale, Abideen Adeyemi Haron, Razali
author_sort	Che Ismail, Che Muhamad Hafiz
title	An investigation of shariah penny stocks’ performance and its determinants: Evidence from Bursa Malaysia
title_short	An investigation of shariah penny stocks’ performance and its determinants: Evidence from Bursa Malaysia
title_full	An investigation of shariah penny stocks’ performance and its determinants: Evidence from Bursa Malaysia
title_fullStr	An investigation of shariah penny stocks’ performance and its determinants: Evidence from Bursa Malaysia
title_full_unstemmed	An investigation of shariah penny stocks’ performance and its determinants: Evidence from Bursa Malaysia
title_sort	investigation of shariah penny stocks’ performance and its determinants: evidence from bursa malaysia
publishDate	2017
url	http://irep.iium.edu.my/59963/ http://irep.iium.edu.my/59963/12/59963-An%20Investigation%20of%20Shariah%20Penny%20Stocks%E2%80%99%20Performance.pdf
first_indexed	2023-09-18T21:25:00Z
last_indexed	2023-09-18T21:25:00Z
_version_	1777412132525047808

An investigation of shariah penny stocks’ performance and its determinants: Evidence from Bursa Malaysia

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