Relationship Between Different Sectorial Indices and the Market Indices

TABLE OF CONTENT PAGE

CHAPTER ONE : INTRODUCTION

1.1 Background of the Study………………………………….2

1.2 Problem Statement………………………………………...5

1.3 Research Questions………………………………………..6

1.4 Objective of the Study……………………………………..7

1.5 Scope of the Study…………………………………………9

1.6 Significance of the Study………………………………….10

1.7 List of Abbreviation……………………………………….11

CHAPTER TWO : LITERATURE REVIEW…………………………………..12

CHAPTER THREE : RESEARCH METHODOLOGY…………………………. 14

3.1 Data and Sample Statistics

3.1.1 Data and Source of Data……………………………..16

3.1.2 Sample of Study……………………………………...16

3.1.3 Theoretical Framework………………………………17

3.1.4 Statement of Hypothesis……………………………..20

3.2 Statistical Method of Analysis

3.2.1 Simple Linear Regression……………………………21

3.2.2 Multiple Linear Regression………………………….21

3.2.3 Correlation Coefficient………………………………22

3.2.4 Coefficient of Determination………………………...23

3.2.5 Hypothesis Testing…………………………………...23

CHAPTER FOUR : EXPECTED FINDINGS AND LIMITATIONS………….24

CHAPTER FIVE : ORGANIZATION OF STUDY

5.1 Outline of Chapters……………………………………….25

5.2 Proposed Time Frame…………………………………….27

5.3 Budget…………………………………………………….28

REFERENCES

CHAPTER ONE: INTRODUCTION

1.1 Background of the Study

In line with the government's aspiration to become a developed nation by 2020, Bursa Malaysia aspires to evolve into a more developed market within the next 14 years. With this in mind, it has teamed up with London's Financial Times Stock Exchange (FTSE) to create a more attractive trading platform, the FTSE Bursa Malaysia (FBM) Index Series, which would make Malaysia a more viable place for investment by foreign entities.

The FBM Series is designed to measure the performance of the major capital segments of the Malaysian market. All Malaysian companies listed on the Bursa Malaysia Main Board are eligible for inclusion, subject to passing FTSE’s international standards of liquidity, invest ability and free float adjustments. There are seven new indices that have been introduced but since this research focuses more on the overall performance of the Malaysian stock markets, we will be comparing between Kuala Lumpur Composite Index (KLCI) and FBM EMAS Index.

Kuala Lumpur Composite Index (KLCI) has become the official index for Malaysia.