1. JULAIHA BINTI MOHAMED NOR 01DPM10F2060
NORAINI BINTI AILLIAS O1DPM10F2064
NOOR AMIRA DIANA BINTI RUZUAN O1DPM10F2086

2. INVESTMENT ANALYSIS
FUNDAMENTAL ANALYSIS
APPROACH
The study of a
stock’s value using
basic data such as its
earnings, sales, risk
and so forth.
Based on the premise
that any security has
an intrinsic value or
true value as estimated
by an investor.

3. TYPES OF FUNDAMENTAL
APPROACHES
The status of
economic activity has
a major impact on
overall stock prices.
Investors must assess
the state of the
economy and its
implication for the
stock market such as
corporate profits.

4. Individual companies and industries tend to respond to
general market movement.
Industry undergo significant movements over both
relatively short and relatively long periods, and industries
will be affected to various degrees by recessions and
expansions.

5. STEPS TO ANALYSE INDUSTRIES
1) Pioneering stage
- Rapid growth in demand
occurs.
2) Expansion stage
- The survivors from pioneering
stage are identifiable.
- Continue to grow and to prosper.
3) Stabilization/ maturity
stage
- The point the growth begins
to moderate.
4) Declining stage
- Demand only come from loyal
customer.
- Replacement for product.

6. COMPANY ANALYSIS
Balance
sheet
Income
statement
Statement of
cash flows
Examine the nature and characteristic of a company.
Examining the financial of fairs and determining the quality of its
earnings.
Three main financial statements :

7. TECHNICAL ANALYSIS

The behaviour of price
follows a certain pattern.
Technicians study the
present and previous price
behaviour

8. TECHNICAL INDICATORS
MARKET VOLUME
BREATH OF THE MARKET
•Measures the amount of investor’s
interest in the market.
•Volume is the number of shares traded
in the market and it’s a reflection of
demand and supply
Market is strong if
•Volume is high in a rising market
•Volume is low in a declining market.
Market is weak if
•Volume traded is high in a declining
market.
•Volume is low in a rising market.
Measures the strength of
the market in terms of
the number of shares that
experience increase,
decrease or no change in
price.
•Market is strong if
The number of shares with
increased price are higher
than the number of shares
with declined price.
•Market is weak if
The difference between the
number of advance and
decline is getting closer.
Can be used as an early
indicator of the strength of
the market.

9. CHARTS TECHNIQUE IN INVESTMENT ANALYSIS
THE BAR CHART
THE POINT AND FIGURE
CHART
Formed by
taking share
prices in a
specified time
period.
Formed by
taking the
highest, lowest
and closing
price for the
day.
The trend is
then analysed.
Forecast the
direction of the
share’s price by
placing the
resistance and
the support line
on the chart.

10. ADVANTAGES OF TECHNICAL
ANALYSIS
DISADVANTAGES OF
TECHNICAL ANALYSIS
Technical
analysis
focuses on
price
movement.
Patterns are
easily
identified.
Subjective and that
personal biases could
creep into the analyst’s
interpretations.
The methods of
interpretation are more or
less standardised, two
different technicians may
look at the same chart and
deduce slightly differing
conclusions.
Substantial movement has
already taken place by the
time a trend gets spotted and
might be too late.

11. EFFICIENT MARKET HYPOTHESIS
DEFINITION
EXPLAIN EFFICIENT
MARKET HYPOTHESIS
Prices will be adjusted based
on new information.
New information is random
and cannot be predicted.
Opportunity to obtain
abnormal returns.
Investors will get returns
from changes in prices.
Prices will change due to
new information entering
the market.

12. PREVIOUS MARKET
INFORMATION: previous
price data, volumes traded
in the market, trends and
chart.
PUBLIC
INFORMATION:
company annual reports,
economic and industry
reports and company
news.
ALL INFORMATION: public and
non-public. Include previous market
information, public information and
all information that has not yet been
made public.
Examples of non-public news:
company strategies, mergers, news
on financially distressed firms.

13. WEAK FORM
Prices of securities are said to reflect past information.
Analysing previous information is useless.
Investors studying previous prices, volumes traded and
other information can make no abnormal profit.
SEMI-STRONG FORM
Prices of securities fully reflect all publicly available information
from the past as well as the present.
Market has to be in weak form before it can be semi-strong form.
All information is reflected correctly and quickly by the price.
Investor is unable to make extra profit as the information is
publicly known.
STRONG FORM
Prices will fully reflect all information whether it is public or non-public.
Information includes all companies’ information that has not been made public.
Investors will not be able to take advantage of it in order to get extra returns.