Analysing Malaysian technology sector during COVID-19: a minimum spanning tree approach

This paper examines the structural changes of the companies listed in the technology sector in Bursa Malaysia during the COVID-19 pandemic. The closing price of each stock is used as the basis for calculating the cross-correlation between the companies' returns. Minimum spanning trees are emplo...

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Main Authors: Bahaludin, Hafizah, Abdullah, Mimi Hafizah, Hussin, Masnida, Laham, Mohamed Faris, Ismail, Zurita
Format: Article
Language:English
Published: Semarak Ilmu Publishing 2024
Online Access:http://psasir.upm.edu.my/id/eprint/116813/
http://psasir.upm.edu.my/id/eprint/116813/1/116813.pdf
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author Bahaludin, Hafizah
Abdullah, Mimi Hafizah
Hussin, Masnida
Laham, Mohamed Faris
Ismail, Zurita
author_facet Bahaludin, Hafizah
Abdullah, Mimi Hafizah
Hussin, Masnida
Laham, Mohamed Faris
Ismail, Zurita
author_sort Bahaludin, Hafizah
building UPM Institutional Repository
collection Online Access
description This paper examines the structural changes of the companies listed in the technology sector in Bursa Malaysia during the COVID-19 pandemic. The closing price of each stock is used as the basis for calculating the cross-correlation between the companies' returns. Minimum spanning trees are employed to analyse the relationships and visualize the correlation changes for each period. Additionally, degree centrality is utilized to analyse the network's structure further. This study covers the period from 2020 to 2021 and involves 39 companies within the technology sector. The findings reveal significant fluctuations in the companies' correlations each year. Moreover, the most influential companies vary according to the period, demonstrating position changes. The fact that Inari Amertron (INAR), Revenue Group (REVE), and My EG Services (MYEG) consistently become leading players in different years shows how strong and influential they are in the technology sector. This suggests that these companies have the ability to shape market trends and possibly even control the direction of the industry. The results provide valuable insights for investors and policymakers, aiding in visualizing company relationships and facilitating strategic portfolio optimization.
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spelling upm-1168132025-05-02T02:53:33Z http://psasir.upm.edu.my/id/eprint/116813/ Analysing Malaysian technology sector during COVID-19: a minimum spanning tree approach Bahaludin, Hafizah Abdullah, Mimi Hafizah Hussin, Masnida Laham, Mohamed Faris Ismail, Zurita This paper examines the structural changes of the companies listed in the technology sector in Bursa Malaysia during the COVID-19 pandemic. The closing price of each stock is used as the basis for calculating the cross-correlation between the companies' returns. Minimum spanning trees are employed to analyse the relationships and visualize the correlation changes for each period. Additionally, degree centrality is utilized to analyse the network's structure further. This study covers the period from 2020 to 2021 and involves 39 companies within the technology sector. The findings reveal significant fluctuations in the companies' correlations each year. Moreover, the most influential companies vary according to the period, demonstrating position changes. The fact that Inari Amertron (INAR), Revenue Group (REVE), and My EG Services (MYEG) consistently become leading players in different years shows how strong and influential they are in the technology sector. This suggests that these companies have the ability to shape market trends and possibly even control the direction of the industry. The results provide valuable insights for investors and policymakers, aiding in visualizing company relationships and facilitating strategic portfolio optimization. Semarak Ilmu Publishing 2024-04-11 Article PeerReviewed text en cc_by_nc_4 http://psasir.upm.edu.my/id/eprint/116813/1/116813.pdf Bahaludin, Hafizah and Abdullah, Mimi Hafizah and Hussin, Masnida and Laham, Mohamed Faris and Ismail, Zurita (2024) Analysing Malaysian technology sector during COVID-19: a minimum spanning tree approach. Journal of Advanced Research in Applied Sciences and Engineering Technology, 44 (2). pp. 210-220. ISSN 2462-1943 https://semarakilmu.com.my/journals/index.php/applied_sciences_eng_tech/article/view/4693 10.37934/araset.44.2.210220
spellingShingle Bahaludin, Hafizah
Abdullah, Mimi Hafizah
Hussin, Masnida
Laham, Mohamed Faris
Ismail, Zurita
Analysing Malaysian technology sector during COVID-19: a minimum spanning tree approach
title Analysing Malaysian technology sector during COVID-19: a minimum spanning tree approach
title_full Analysing Malaysian technology sector during COVID-19: a minimum spanning tree approach
title_fullStr Analysing Malaysian technology sector during COVID-19: a minimum spanning tree approach
title_full_unstemmed Analysing Malaysian technology sector during COVID-19: a minimum spanning tree approach
title_short Analysing Malaysian technology sector during COVID-19: a minimum spanning tree approach
title_sort analysing malaysian technology sector during covid-19: a minimum spanning tree approach
url http://psasir.upm.edu.my/id/eprint/116813/
http://psasir.upm.edu.my/id/eprint/116813/
http://psasir.upm.edu.my/id/eprint/116813/
http://psasir.upm.edu.my/id/eprint/116813/1/116813.pdf