Fundamental Analysis VS Technical analysis: The Comparison of Two Analysis in Malaysia Stock Market

  • Shaharudin Jakpar Universiti Malaysia Sarawak
  • Michael Tinggi Universiti Malaysia Sarawak
  • Akmal Hisham Tak Universiti Malaysia Sarawak
  • Wen Yi Chong Universiti Malaysia Sarawak


This study is conducted to analyse the credibility of the fundamental analysis and technical analysis on predicting the stock return and compare both models to determine which model is more credible to be used as a good trading strategy by investors. The study is based on 80 companies selected from Bursa Malaysia in the food manufacturing industry in the main market from the year of 2012 to 2016. The stock return is used to measure whether both analyses are able to forecast and generate the positive return. Net profit margin, price earnings ratio and total asset turnover are used as fundamental indicators while moving average convergence divergence is used as technical analysis indicators. In order to test the significance of both model on stock return, panel regression models are applied in this study. The result shows that although both model can be used to generate positive return, technical analysis did not outperform fundamental analysis in the food manufacturing industry in Bursa Malaysia.


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How to Cite
Jakpar, S., Tinggi, M., Tak, A. H., & Chong, W. Y. (2018). Fundamental Analysis VS Technical analysis: The Comparison of Two Analysis in Malaysia Stock Market. UNIMAS Review of Accounting and Finance, 2(1).