An investigation of Sharīʿah penny stocks’ performance and its determinants: evidence from Bursa Malaysia
Since the introduction of Sharīʿah Status Company in Bursa Malaysia in 1997, the demand for Sharīʿah-compliant investment has increased. However, the limitations in Sharīʿah-compliant investment create worries and doubtfulness among the investors whether the Sharīʿah-compliant stocks performance can...
| Main Authors: | , , |
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| Format: | Book Chapter |
| Language: | English |
| Published: |
IIUM Institute of Islamic Banking and Finance
2019
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| Subjects: | |
| Online Access: | http://irep.iium.edu.my/73089/ http://irep.iium.edu.my/73089/1/73089_An%20investigation%20of%20Shar%C4%AB%CA%BFah%20penny%20stocks.pdf |
| _version_ | 1848787737268715520 |
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| author | Che Ismail, Che Muhamad Hafiz Abideen, Adewale Abideen Haron, Razali |
| author2 | Haron, Razali |
| author_facet | Haron, Razali Che Ismail, Che Muhamad Hafiz Abideen, Adewale Abideen Haron, Razali |
| author_sort | Che Ismail, Che Muhamad Hafiz |
| building | IIUM Repository |
| collection | Online Access |
| description | Since the introduction of Sharīʿah Status Company in Bursa Malaysia in 1997, the demand for Sharīʿah-compliant investment has increased. However, the limitations in Sharīʿah-compliant investment create worries and doubtfulness among the investors whether the Sharīʿah-compliant stocks performance can outperform the Non-Sharīʿah-compliant stocks and most importantly, maximizing the profit. Hence, this study is conducted using 40 Sharīʿah and 40 non-Sharīʿah penny stocks as the samples. Then, technical analysis is applied to determine the market timing. Based on the technical analysis on Kuala Lumpur Composite Index (KLCI), the period of study is chosen from April 2009 to July 2017. This study investigates 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 is no significant difference in terms of risk and return between Sharīʿah penny stock portfolio and Non-Sharīʿah 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, Sharīʿah penny stocks portfolio is better in terms of risk adjusted return compared to the conventional portfolio. |
| first_indexed | 2025-11-14T17:29:41Z |
| format | Book Chapter |
| id | iium-73089 |
| institution | International Islamic University Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T17:29:41Z |
| publishDate | 2019 |
| publisher | IIUM Institute of Islamic Banking and Finance |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | iium-730892020-01-28T01:32:36Z http://irep.iium.edu.my/73089/ An investigation of Sharīʿah penny stocks’ performance and its determinants: evidence from Bursa Malaysia Che Ismail, Che Muhamad Hafiz Abideen, Adewale Abideen Haron, Razali HG4501 Stocks, investment, speculation Since the introduction of Sharīʿah Status Company in Bursa Malaysia in 1997, the demand for Sharīʿah-compliant investment has increased. However, the limitations in Sharīʿah-compliant investment create worries and doubtfulness among the investors whether the Sharīʿah-compliant stocks performance can outperform the Non-Sharīʿah-compliant stocks and most importantly, maximizing the profit. Hence, this study is conducted using 40 Sharīʿah and 40 non-Sharīʿah penny stocks as the samples. Then, technical analysis is applied to determine the market timing. Based on the technical analysis on Kuala Lumpur Composite Index (KLCI), the period of study is chosen from April 2009 to July 2017. This study investigates 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 is no significant difference in terms of risk and return between Sharīʿah penny stock portfolio and Non-Sharīʿah 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, Sharīʿah penny stocks portfolio is better in terms of risk adjusted return compared to the conventional portfolio. IIUM Institute of Islamic Banking and Finance Haron, Razali Abdullah, Adam 2019-07-04 Book Chapter PeerReviewed application/pdf en http://irep.iium.edu.my/73089/1/73089_An%20investigation%20of%20Shar%C4%AB%CA%BFah%20penny%20stocks.pdf Che Ismail, Che Muhamad Hafiz and Abideen, Adewale Abideen and Haron, Razali (2019) An investigation of Sharīʿah penny stocks’ performance and its determinants: evidence from Bursa Malaysia. In: Islamic Fund & Wealth Management. A way forward. IIUM Institute of Islamic Banking and Finance, Kuala Lumpur, pp. 227-239. ISBN 978-983-44568-4-9 |
| spellingShingle | HG4501 Stocks, investment, speculation Che Ismail, Che Muhamad Hafiz Abideen, Adewale Abideen Haron, Razali An investigation of Sharīʿah penny stocks’ performance and its determinants: evidence from Bursa Malaysia |
| title | An investigation of Sharīʿah penny stocks’ performance and its determinants: evidence from Bursa Malaysia |
| title_full | An investigation of Sharīʿah penny stocks’ performance and its determinants: evidence from Bursa Malaysia |
| title_fullStr | An investigation of Sharīʿah penny stocks’ performance and its determinants: evidence from Bursa Malaysia |
| title_full_unstemmed | An investigation of Sharīʿah penny stocks’ performance and its determinants: evidence from Bursa Malaysia |
| title_short | An investigation of Sharīʿah penny stocks’ performance and its determinants: evidence from Bursa Malaysia |
| title_sort | investigation of sharīʿah penny stocks’ performance and its determinants: evidence from bursa malaysia |
| topic | HG4501 Stocks, investment, speculation |
| url | http://irep.iium.edu.my/73089/ http://irep.iium.edu.my/73089/1/73089_An%20investigation%20of%20Shar%C4%AB%CA%BFah%20penny%20stocks.pdf |