Analysis On Foreign Exchange and Stock Return

ACT 4221 INVESTMENT ANALYSIS
Semester 1, Session 2017/2018

Lecture Group 1, Monday (8AM-10AM)
Wednesday (8AM-10AM)
ASSIGNMENT:
FOREIGN EXCHANGE PROBLEM STATEMENT
LECTURER’S NAME:
PROF. MADYA DR. FAUZIAH BT MAHAT
GROUP MEMBER:
STUDENT NAME MATRIC NUMBER
TENG YEE JING 178034
GOH JOE MING 178462
LIM LAY CHOO 178465
JUDY HII INN INN 178725
SOON SEE KHIM 178913
CHANG XUECHENG ES01616
Table of Contents
Chapter 1 Introduction ................................................................................................... 1
Chapter 2 Company Background ................................................................................... 2
Fraser & Neave Holdings Bhd (F&N) ....................................................................... 2
Nestlé (Malaysia) Berhad ........................................................................................... 6
Poh Kong Holdings Bhd ............................................................................................ 9
Tomei Consolidated Berhad ..................................................................................... 14
Chapter 3 Problem Statement ...................................................................................... 19
Impact of Foreign Exchange on Consumer Product Sector ..................................... 19
Impact of Foreign Exchange on Food Manufacturing Industry ........................... 20
Impact of Foreign Exchange on Jewellery Industry ............................................. 21
Chapter 4 Literature Review ........................................................................................ 24
Chapter 5 Data Collection ............................................................................................ 28
(A) FRASER & NEAVE HOLDING BHD (F&N) (3689) ..................................... 28
(B) NESTLE (MALAYSIA) BHD (4707) ............................................................... 31
(C) POH KONG HOLDINGS BHD (5080) ............................................................ 34
(D) TOMEI CONSOLIDATED BHD (7230) .......................................................... 37
(E) Foreign Exchange Rate (USD)........................................................................... 40
Chapter 6 Data Analysis .............................................................................................. 43
Company 1 F&N Regression ................................................................................... 43
Company 2 Nestle Regression ................................................................................. 45
Company 3 Poh Kong Regression ........................................................................... 47
Company 4 Tomei Regression ................................................................................. 49
Chapter 7 Result and Discussion ................................................................................. 51
Chapter 8 Conclusion ................................................................................................... 59
References .................................................................................................................... iii
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Chapter 1 Introduction
Bursa Malaysia Berhad (MYX: 1818) is an exchange holding company approved under
Section 15 of the Capital Markets and Services Act 2007. It operates a fully integrated
exchange, offering the complete range of exchange-related services including trading,
clearing, settlement and depository services (Bursa Malaysia, 2017).
There are 15 categories of sectors listed in the main market of the Bursa Malaysia. They
are consumer products, industrial products, construction, trading services, finance,
properties, mining, plantations, hotels, technology, infrastructure project companies,
closed-end funds, exchange traded funds, Real Estate Investment Trust (REIT), and
Special Purpose Acquisition Company (SPAC).
Foreign Exchange (FOREX) refers to the foreign exchange market. It is the largest and
most liquid over-the-counter market in the world in which the foreign currencies of the
world are traded (Volna, Kotyrba, & Janosek, 2017).
Foreign exchange control (FEC) in Malaysia is governed by the Exchange Control Act,
1953. The Controller of Foreign Exchange is the Governor of Bank Negara of Malaysia
(BNM) who also acts as the foreign exchange dealings regulator in Malaysia
(Export.gov, 2017).
Our group chooses to study the impact of forex exchange on the consumer product
sector. Four companies in the category of the consumer product sector being chosen are
Poh Kong Holdings Bhd, Tomei Consolidated Berhad, Nestlé (Malaysia) Berhad, and
Fraser & Neave Holdings Bhd (F&N). Both Poh Kong Holdings Bhd and Tomei
Consolidated Berhad are involving in the jewellery industry while both Nestlé
(Malaysia) Berhad and Fraser & Neave Holdings Bhd (F&N) are involving in the food
manufacturing industry. Poh Kong Holdings Bhd is being chosen in this study because
it is the largest jewellery retail store in Malaysia while Tomei Consolidated Berhad is
by far the only Company in Malaysia to be accredited with the status “World Diamond
Mark” Authorized Diamond Dealer for its excellent record of customer service in the
diamond industry. Nestlé (Malaysia) Berhad is being chosen because it is the leader in
nutrition, health and wellness due to its strong R&D operations food industry for more
than 140 years while Fraser & Neave Holdings Bhd (F&N) gains excellent reputation
in Malaysia and has successfully been exported to more than 20 countries around the
world.
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Chapter 2 Company Background
Company 1:
Fraser & Neave Holding Bhd Global History
Fraser and Neave, Limited ("F&N" or the "Group") originated from Singapore. F&N
Company Founder of F&N Company are Scotsmen John Fraser and David Chalmers
Neave, they had established The Singapore and Straits Aerated Water Company. This
company mainly to produce carbonated soft drinks. In the year 1898, The Singapore
and Straits Aerated Water Company had become Fraser & Neave, Limited (F&N). They
diversified from their printing business to pioneer the aerated water business in
Southeast Asia in 1883.
Fraser & Neave Holdings Bhd (F&N)
Company No: 004205-V
Stock Code: 3689
Stock Name: F&N (Main Market of Bursa Malaysia Securities Berhad)
Initial Public Offering: 28th August 1996
1. Company Overview
In 1913, the company has branches in Kuala Lumpur, Malacca, Seremban, Ipoh,
Penang, Bangkok, Saigon and various agent offices. In 1936, Fraser & Neave Ltd.
secured the franchise of Coca-Cola for Singapore and Malaysia. Fraser & Neave
Holdings Bhd (F&N) is a Malaysian company listed on Bursa Malaysia’s Main Board
with expertise and prominent standing in the food and beverage business. F&N is
amongst the regions and Malaysia’s oldest companies and its brand enjoys the rare
distinction of being a market leader and household name in many categories. F&N
operates in Malaysia, Brunei, Thailand and Indochina, and is a subsidiary of Fraser and
Neave. Nowadays, F&N has over 3,000 employees and is Malaysia's top 100 leading
graduate employers. From purveyors of carbonated soft drinks, the F&N Group is one
of Malaysia’s diversified blue chip companies with leadership of the nation’s.
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2. Corporate Directory
Fraser & Neave Holding Bhd was founded in 1992 and is based in Shah Alam, Malaysia
with additional offices in Malaysia. Nowadays, there are 8 factories and operates that
located in both Peninsular and East Malaysia, which including Shah Alam, Kuala
Lumpur, Kuching, Johor Bahru, Butterworth and Pulau Indah at Selangor.
3. Business Review
As a result of the internal reorganisation, our operating businesses are now aligned
according to products and services, namely Food and Beverages Malaysia (F&B
Malaysia) which encompasses both Soft Drinks and Dairies Malaysia. In Malaysia,
despite the tough operating environment, our core brands, namely 100PLUS, F&N
SEASONS, F&N NutriSoy and F&N Sweetened Condensed and Evaporated Milk
maintained pole positions in their respective categories. 100PLUS was recognised once
again as one of Malaysia's top beverage brands, securing its sixth Putra Brand Award
in the Non-alcoholic Beverage category. 100PLUS continues to support sports
development and pledged RM3 million in full support of the 29th Southeast Asian
Games (SEA Games) and 9th ASEAN Para Games as the official Silver Sponsor. We
are extremely proud of the achievement of our long time Brand Ambassador Dato' Lee
Chong Wei, and our newly appointed 100PLUS brand ambassadors, comprise of men's
double pair, Goh V Shem and Tan Wee Kiong, and mixed doubles duo Chan Peng Soon
and Goh Liu Ying who took home three silver medals at the 2016 Rio Olympics.
4. Economic Landscape
Within a generally soft economic landscape, the Group capitalised on the low
commodity prices to invest in a major transformation for F&NHB and build our
capability for future growth. This, together with our 133-year heritage and ongoing
efforts to further strengthen our portfolio of market leading brands, enabled us to
withstand macro-economic pressures as well as intense competition to further enhance
our market share and report 32.7 per cent growth in our profit before tax (PBT).
Throughout FY2016, we embarked on various initiatives under a transformation
journey to boost our sustainability and progress towards our vision of becoming the 'No.
1 Total Beverage Company in Malaysia by 2020'. Much focus was trained on an internal
reorganisation as part of this transformation, which encompassed streamlining of our
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operations. The journey has just begun, and as in any major transformation programme,
the full impacts will be felt a couple of years down the road.
5. Financial Performance
Reflecting the macro-environment, our financial outcomes were also mixed with an
overall weaker performance in Malaysia buffered by exceptionally robust results in
Thailand where, once again, we were able to celebrate record topping revenue that
exceeded the RM1.5 billion mark. Combining both country performances, our Group
revenue grew 1.5 per cent from RM4.11 billion to RM4.17 billion while PBT, as noted
earlier, surged by 32.7 per cent from RM333.8 million to RM442.9 million.
Figure 1 F&N Overall Financial Performance FY2016
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6. Marketing Strategic
F&N's role as the parent company and entrepreneurial shareholder of our businesses
will remain unchanged. Because of playing a proactive and pivotal role on the
respective boards and board committees. Also, in charting the strategic directions of the
individual businesses. Moreover, identifying creating new opportunities of growth for
its subsidiaries to a new horizon.
The strategy for growth for the business is clear. Given Singapore's small domestic
market, growth for the Group can only be achieved by extracting operating efficiencies,
expanding into new markets and venturing into new businesses - measures that have
been actively pursued by F&N. Continuing to drive shareholder value, the Group
targets the following for 2020:
 Growth: To be the leading beverage company in Southeast Asia, differentiated

through innovation by developing beverages that meet consumers' evolving
needs and preferences
 Diversity: To diversify revenue and earnings through geographic expansion

and product diversification in existing markets (i.e. Malaysia, Singapore, and
Thailand) as well as new marketing places such as Myanmar, Indonesia,
Vietnam, and Philippines
 Reach: To strengthen and build route-to-market in priority markets, and to be

the most trusted and preferred beverage partner
 Brands: To be amongst the top three players in markets, focusing on the

following core brands for the non-alcoholic beverages: 100PLUS, F&N
NUTRISOY, F&N MAGNOLIA, EST and OISHI
 Professionalism: To be the employer of choice GROUP FINANCIAL

PERFORMANCE
Company 2:
Nestlé Global History
Nestlé S.A. is a Swiss transnational food and drink company headquartered in Vevey,
Vaud, Switzerland. Nestlé history begins in 1866, with the foundation of the Anglo-
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Swiss Condensed Milk Company. Henri Nestlé, founder of Nestlé develops a
breakthrough infant food in 1867, and in 1905 the company he founded merges with
Anglo-Swiss Milk Company, to form what is now known as the Nestlé Group. Nestlé's
products include baby food, medical food, bottled water, breakfast cereals, coffee and
tea, confectionery, dairy products, ice cream, frozen food, pet foods, and snacks.
Nestlé (Malaysia) Berhad
Company No.: 110925-W
Stock Code: 4707
Stock Name: NESTLE (Main Market of Bursa Malaysia Securities Berhad)
Initial Public Offering Date: 13th December 1989
1. Company Overview
Nestlé began in Malaysia in 1912 as the Anglo-Swiss Condensed Milk Company in
Penang and later, growth and expansion made a move to Kuala Lumpur necessary in
1939. With the most recent information shown in Nestlé Malaysia website, Nestlé
(Malaysia) Berhad employs more than 5500 people and manufactures as well as
markets. It dominates a sizeable portion of the Malaysian food and drink market with
more than 500 Halal-certified products. The most famous and well-known brand such
as MILO®, MAGGI®, NESCAFÉ® and KIT KAT® have become trusted household
names and enjoyed for generations.
2. Corporate Directory
Since 1962, with its first factory in Petaling Jaya, Nestlé Malaysia now manufactures
its products in 9 factories and operates from its head office in Mutiara Damansara. The
9 factories located in both Peninsular and East Malaysia, which including Petaling Jaya,
Batu Tiga, Shah Alam Complex, Sri Muda, Chembong, Kuching, and Klang.
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3. Business Review
Locally Managed Business by Nestlé (Malaysia) Berhad including Ice Cream, Milks,
Confectionery, Ready-to-Drink (RTD), MILO and Chilled Dairy. Among these
business, MILO has organized the most number of campaigns throughout the year 2016
which is 5 campaigns in total. All these 5 campaigns are focusing on sports but with
respective aims. For example, MILO encourage the public to contribute to Malaysia’s
up-and-coming athletes through the MILO ‘Sokong Demi Sukan’ Campaign, while on
the other hand MILO Champions Clinic 2016 aims to pique children’s interest in sports,
especially during the school holidays in order for them to avoid leading sedentary
lifestyles.
4. Economic Landscape
The year 2016 has indeed been a challenging one, marked by global and domestic
economic headwinds. Nevertheless, Nestlé (Malaysia) Berhad successfully weathered
these challenges, delivering another year of strong profitable growth by leveraging on
resilient strategic business framework and steadfast commitment to propel Nestlé
(Malaysia) Berhad to new heights. Nestlé (Malaysia) Berhad resilience is underpinned
by strong portfolio of successful brands, a highly capable talent pool and above all,
culture of continuous improvement in operations and emphasis on innovation.
5. Reigniting the Growth: FIT Approach
Nestlé (Malaysia) Berhad improved their performance for the year of 2016 was driven
by commitment to reignite the growth of the company, propelled by long-term strategy
known as FIT. FIT is Nestle’s new growth strategy going forward. FIT is an acronym
which defines F: Fuel, I: Innovation and T: Transfer. By emphasising on Innovation,
Nestle’s strategy going forward is to create more consumer-driven products. Its latest
Maggi creation, Maggi Johore Royale, was created by gathering information from its
employees. Currently, Nestle has also hosted a competition themed Products and
Beyond to gather more innovative creations from the consumers.
For FYE 2016, Nestlé (Malaysia) Berhad marked a milestone by crossing the threshold
of RM5 billion in revenue which achieved the highest as compared to previous 5 years,
with a turnover of RM5.1 billion for the year. This represents a 4.7% increase from
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RM4.8 billion in 2015. Domestic sales continued to be a key contributor, achieving 3.3%
growth. Similarly, the export business showed good growth with an increase of 9.6%,
an improvement compared with a flat performance in 2015. Gross Profit for the year
increased by 7.1% as a result of the higher turnover, favorable commodity prices and
stronger operational efficiencies in the factories and supply chain. Nestlé (Malaysia)
Berhad’s balanced business approach to drive long-term growth enabled it to increase
the operating profit by 5.1% to RM799 million in 2016 and also the profit after tax rose
by 7.9% to RM637 million.
Figure 2 Nestle Overall Financial Performance FY2016
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7. Nestlé (Malaysia) Berhad in Society: Creating Shared Value and Meeting
Commitments
Creating Shared Value (CSV) is a fundamental part of Nestlé (Malaysia) Berhad’s way
of doing business that focuses on specific areas of the company’s core business
activities where value can best be created both for society and shareholders. In order
for business to be successful in the long run, Nestlé (Malaysia) Berhad consider the
needs of two primary stakeholders at the same time: the people in the countries where
they operate and their shareholders
At Nestlé (Malaysia) Berhad, they have analyzed their value chain and determined that
the areas of greatest potential for joint value optimisation with society are Nutrition,
Water and Rural Development. Nestlé (Malaysia) Berhad have joint programmes with
over 100 organisations around the world in these three areas:
(i) Nutrition: This is because food and nutrition are the basis of health and of the
business.
(ii) Water: This is because the ongoing quality and availability of it is critical to life,
the production of food and to operations.
(iii) Rural development: This is because the overall wellbeing of the farmers, rural
communities, workers, small entrepreneurs and suppliers are intrinsic to our ability to
continue to do business in the future. These three areas are fundamental to overall
business goal, which is “To become the recognized leader in Nutrition, Health, and
Wellness, trusted by all stakeholders”.
Company 3:
Poh Kong Holdings Bhd
Company No.: 586139-K
Stock Code: 5080
Stock Name: POHKONG (Main Market of Bursa Malaysia Securities Berhad)
Initial Public Offering Date: 8th April 2005
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1. Business Overview
Poh Kong Holdings Berhad is a Malaysia-based company engaged in investment

holding and the provision of management services. Through its subsidiaries, the
Company operates in three segments: trading, which is engaged as suppliers and
retailers of jewelleries, precious stones and gold ornaments; manufacturing, which is
engaged as a manufacturer and dealers of jewelleries, precious stones and gold
ornaments, and others, which includes investment holding. Its products are divided into
two main categories: viz gold and gemset jewelleries.
Poh Kong, founded in Petaling Jaya New Town in 1976, as a pioneer jeweller has
transformed itself from a heartland traditional goldsmith jeweller into the most
recognised top of mind jewellery brand as being synonymous with excellence in respect
of design, quality and craftsmanship. Listed in Bursa Malaysia since 2004, today Poh
Kong has its own manufacturing facility in Shah Alam and has reached 100th outlets
marked in 2012, thus earning its position as Malaysia’s largest jewellery retail chain
store. It has succeeded in developing and promoting its own brand and being the sole
distributor for many renowned international brands.
2. Financial Review
Figure 3 Poh Kong Overall Financial Performance FY2016
The Group recorded lower sales revenue of RM776.53 million for FYE2016 as
compared to RM805.71 million in FYE2015, a decrease of RM29.18 million. Pre-tax
profit registered RM17.48 million compared to RM26.13 million in the preceding year
was lower by RM8.65 million. The decrease was mainly due to a decline in consumer
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demand. Profit after tax was RM11.01 million for FYE2016 compared to RM14.48
million in FYE2015.
During the financial year under review, the Group has in place brand building activities
via advertising, promotions and roadshows to create and reinforce awareness,
innovative products at affordable prices were introduced to boost revenue. In addition,
several financial measures were also undertaken which included streamlining of
businesses, stringent inventories and procurement management, lower cost of sales
through bulk purchase to enjoy economies of scale, reducing overheads and enhancing
the Group’s debt portfolio.
The weakening of the Ringgit including other currencies against the USD, had no
significant impact on Poh Kong’s operational costs as all its borrowings are
transacted in Ringgit Malaysia. The continued global economic uncertainty have
fuelled demand for gold and boosted gold prices to rally around US$1,182 to US$1,259
per oz from January to June 2016 (Source - World Gold Council, Gold Demand Trends
Q2, August 2016). The weaker Ringgit has also pushed the gold price higher in Ringgit
terms, therefore making it more attractive to investors.
3. Largest Jewellery Retail Chain Store
Poh Kong has a total of 102 outlets under various brands including retail concept stores
nationwide that occupy a total retail space of approximately 126,000 sq ft as at
FYE2016. The opening of new outlets located mostly in large shopping malls is to
facilitate accessibility, provide convenience and to enhance visibility of its brands.
Besides its market reach and economies of scale, the Group’s large and extensive
network also reinforces Poh Kong’s brand in the jewellery industry.
In FYE2016, the Group opened five outlets in IOI Mall Puchong, AEON Midtown
Falim Shopping Centre Ipoh, AEON Mall Klebang Ipoh, AEON Mall Shah Alam and
AEON Mall Kota Bharu which contributed a total of RM13.37 million revenue or a 1%
growth for the financial year. It has also extended its Mid Valley store to cater for non-
yellow gold jewellery inventory to meet the needs and demands of consumers.
In FYE2017, it plans to open another 3 to 5 stores with an estimated total capital

expenditure including inventories of about RM3 million to RM5 million per store. The
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Group has been consolidating and streamlining its business, especially low performing
outlets to make way for retail expansion in locations with better growth potential. For
the year under review, it voluntarily wound up six subsidiaries and dissolved one
subsidiary from the Group as an internal restructuring exercise.
4. Retail Sales the Key Earning Driver
The Group’s gold jewellery, gold investment products and fine gemstones are the key
earning driver for the Group’s revenue. Gold investment products consist of gold bars,
bullions, wafers and coins.
Retail outlets serve customers from all walks of life and caters to various taste and
preferences by offering a comprehensive range of jewellery and exclusive design
products that meet our business principles of quality, value, trust and choice.
The number of outlets by state or territory as at FYE2016 was as follows: Selangor/

Kuala Lumpur 59 (58 %), Johore 11 (10 %), Negeri Sembilan 5 (5 %), Perak 9 (9 %),
Malacca 5 (5 %), Penang 5 (5 %), Kedah 3 (3 %), Pahang 3 (3 %), and Kelantan 2 (2 %).
Retail outlets located within Kuala Lumpur and Selangor contributed 71 % of the total
revenue for FYE2016.
5. In-House and International Brands
Poh Kong is a one-stop, preferred family jeweller with a comprehensive range

of in-house jewellery brands and exclusively designed international products, for a new
generation of customers.
Its in-house brands include Anggun, Happy Love, Tranz, The Art of Auspicious
Jewellery, Bunga Raya gold bars and wafers. Anggun features modern Asianstyled
designs of floral motifs that reflect the beauty of nature’s flora, while Happy Love is
inspired by Confucian tradition, and has a selection of elegant oriental gold
jewellery that are suitable for traditional weddings. Tranz, designed for bold and
daring men and women, offers contemporary gold jewellery in four collections –
Classic, Love, Nature and Duet. The Art of Auspicious Jewellery is a showcase of
well-crafted masterpieces designed with fengshui elements.
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Poh Kong is the licensee for Disney Collection, sole distributor for Schoeffel luxury
pearls from Germany, Luca Carati and Moraglione 1922 from Italy, Angel Diamond,
the world’s most brilliant and ideal square diamond and its latest addition, Hemera
diamond with 101 facets, and carrier of many more exquisite jewellery pieces from all
over the world.
The Group continuously launches new exclusive designs, and new fine jewellery pieces
of European brands and to enhance product variety. It has also GST exempted gold
bars, namely the LBMA gold bars with iconic Bunga Raya motifs, ranging from 5
grams to 100 grams, at attractive prices to cater for various consumers and investors.
6. Retail Concept Stores
In addition to gold jewellery, Poh Kong outlets also carry diamonds and gems so as to
provide customers wider choices and collections of exquisite jewellery at our retail
concept stores which carry high-end bespoke international brands – Schoeffel, Luca
Carati, Moraglione 1922, Angel and Hemera Diamond.
Retail concept stores include Poh Kong, Poh Kong Gallery, Diamond & Gold, Diamond
Boutique, Gold Boutique and Oro Bianco. These concept stores offer a wide range of
jewellery from gold related jewellery to gold investment products, diamonds and
coloured gems, specially created by its team of skilled craftsmen and designers.
7. Marketing Campaigns
Poh Kong’s products are extensively promoted through brand building campaigns.
These include advertising and promotion activities, road shows and ground events held
with strategic partners to reinforce awareness of the Poh Kong brand name in the
marketplace.
The Company also focuses on brand and product advertising and creates various
innovative campaigns to engage with the public via traditional and new social media.
Marketing campaigns, leveraging on-line platforms, social media and on-ground

activities were implemented successfully during the year.
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Company 4:
Tomei Consolidated Berhad
Company No.: 692959-W
Stock Code: 7230
Stock Name: TOMEI (Main Market of Bursa Malaysia Securities Berhad)
Initial Public Offering Date: 12th July 2006
1. Company Overview
Tomei Consolidated Berhad (692959-W) was founded in 1968 as a jewellery designer

and manufacturer and is headquartered in Kuala Lumpur, Malaysia. It sets up its own
first retail outlet under the brand name TOMEI in Campbell Shopping Complex in
Kuala Lumpur in the early seventies.
Tomei is a Malaysia-based investment holding company. It is an integrated

manufacturer and retailer of gold, jewellery and diamonds. Its operations are principally
located in Malaysia. Tomei and its subsidiaries are engaged in manufacturing and
wholesales, and in retailing of gold ornaments and jewelleries. Tomei has
approximately 70 retail outlets under different brands, including Tomei, My Diamond,
Goldheart, Le Lumiere and De Beers. Besides retailing, the Company also sell its
manufactured products to other retailers both in Malaysia and overseas including
Singapore, Vietnam, Indonesia, Thailand and Germany.
In 2013, Tomei became an exclusive distributor of De Beers, reinforcing its stature as

among the top jeweller in the market. In addition, it also holds the rights to franchise
the De Beers brand for retailing in Singapore, Indonesia, Thailand and Vietnam.
Tomei constantly introduces new design of jewellery to the market and has been prolific
in launching new products, unveiling more than 4,000 new designs every year which
include its signature products such as the Ana-stasia and Chomel for gold jewellery and
Eternal Binding for diamond jewellery. Tomei also secured the exclusive
distributorship of China’s “Batar Jewellery” and Thailand’s “Prima Gold” for the 24k
gold segment. For the children market, Tomei holds license from Warner Bros.
Consumer Products (WBCP) from United Kingdom and Sanrio Company, Ltd., from
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Japan to manufacture and sell gold jewellery in Malaysia based on characters from
Baby Looney Tunes and Super Heroes, and Hello Kitty respectively.
Details of key financial performance indicators are provided in the section titled ‘5
years financial highlights” in this Annual Report.
Figure 4 Tomei 5 years Financial Highlight FY2012-2016
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Figure 5 Tomei Overall Financial Performance FY2016
Tomei is by far the only Company in Malaysia to be accredited with the status “World
Diamond Mark” Authorized Diamond Dealer. The accreditation is given to Tomei in
year 2016 for its excellent record of customer service in the diamond industry and for
our effort to continue promoting and educating the public on diamond and in
recognition of our promise to source for diamond from only legitimate suppliers.
Its retailing operation has also been accredited with ISO in the Quality Management
System from Llyod’s Register Quality Assurance Kuala Lumpur in recognition of its
commitment to quality and services since year 2003.
3. Revenue & Profitability
The retail environment has been very challenging during the financial year under
review (year 2016). Tomei has experienced slower economic growth in Malaysia and
the Ringgit has suffered a steep depreciation against the US Dollar. Commodity prices
have remained subdued but less volatile. Against this background, consumers have
less disposable income to spend and this has negatively impacted on the retail
industry. In response to this difficult situation, it has continued with its rationalization
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strategy of closing down non-performing outlets and scouting for better location and at
the same controlling and reducing operating overheads. In this respect, it has closed 4
retail outlets and opened 3 new outlets respectively at Genting Highlands, Alor Star and
Kota Kinabalu. Tomei’s rationalization plan to close non-performing outlets and to
control and reduce its operating overheads has shown positive results for the financial
year under review. Despite its Group’s revenue in 2016 reducing to RM472.209 million,
a drop of 5.4% compared to last financial year, its Group’s pre-tax profit in 2016 has
increased to RM8.053 million, almost three folds increase compared to that of the last
financial year.
Tomei reported a lower Group’s revenue of RM472.209 million for the financial
year (year 2016) under review as compared to RM499.341 million reported for last
financial year (year 2015) mainly due to lower sales volume achieved for its retail
division. Despite the lower revenue, it managed to achieve a higher Group’s profit
before tax (“PBT”) of RM8.053 million as compared to RM2.067 million reported for
last financial year. Its rationalization exercise managed to contribute positively to its
financial performance.
a. Retail division
Its retail division achieved lower sales by 8.51% to RM355.517 million for the financial
year under review as compared to RM388.603 million recorded for last financial year.
Despite the lower sales, it managed to achieve Group’s PBT of RM4.481 million, a
turnaround from the loss made for last financial year, due mainly to the rationalization
exercise carried out by its management of closing down non-performing non-strategic
outlets and replacing with one which is more strategic and having more footfalls while
at the same time controlling and reducing operating overheads.
b. Manufacturing & Wholesales division
Its manufacturing & wholesales division reported revenue of RM116.692 million

for the financial year under review as compared to RM110.738 million recorded for
last financial year, a growth of 5.38%. It has introduced many new designs and managed
to penetrate new markets such as East Malaysia and Singapore. As a result, it managed
to report a PBT of RM5.423 million for the financial year.
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4. Marketing Strategy
The Group also conducted various promotional exhibitions and trade fairs in promoting
its latest offering to its customers.
Furthermore, to retain customers and to meet their expectation, the Group has
refurbished and upgraded its outlets to provide a conducive retail environment so as to
enhance customers’ shopping experience which it hopes will translate into more sales
as it goes along.
The Group also plans to be more active in e-retailing to keep abreast with changing
shopping habits especially among the younger generation. In addition to its very own
GoldSilver2u.com, it also sells its products on e-commerce platform such as Lazada
and 11street.
For the past several years, Tomei has noticed a growing trend among consumers in
buying gold for investment and hedge against inflation. Therefore, Tomei has been
among the first in the market to leverage on this opportunity by offering investment
precious metals to its customers. The Group introduced GoldSilver2u.com, an e-portal
specializing in gold and silver investment. Currently, we are the official distributor for
the Royal Canadian Maple Leaf and the Australian Perth Mint in Malaysia. In
collaboration with Pamp Suisse SA, we have introduced the Tomei Pamp Suisse
in Malaysia featuring various local landmarks for each different weight
denomination.
In view of the rapidly changing retail landscape in China, we have converted our retail
concept to a franchise model to accelerate our penetration into the China market. This
model will allow our franchisees to carry Tomei brand in various locations in China
which will be more cost effective as compared to self-operated stores.
In the year 2014, the Group begun to the retailing of cosmetic and skincare products
under the Korean brands of “The History of Whoo” and “belif” in Malaysia. This
marked the Group’s first venture into the lucrative cosmetics and skincare business. In
2016, Tomei’s Group has opened 4 new stores and kiosks making a total of 10 cosmetic
stores and kiosks. Tomei views human capital as a very important aspect of the Group.
Their staffs are constantly being trained and groomed to enhance their skills to serve
customers better and as part of succession planning process.
18
Chapter 3 Problem Statement
Impact of Foreign Exchange on Consumer Product Sector
Foreign currency risk (also known as FX risk, exchange rate risk or exchange risk) is
the risk that the fair value or future cash flows of a financial instrument would fluctuate
because of changes in foreign exchange rates (Tomei & Poh Kong & F&N, 2016).
Furthermore, transactional currency exposures mainly arose from transactions that are
denominated in currencies other than functional currencies of operating entities (Tomei,
2016). The risk is that there may be an adverse movement in the exchange rate of the
denomination currency in relation to the base currency before the date when the
transaction is completed. Investors and businesses exporting or importing goods and
services or making foreign investments have an exchange rate risk which can have
severe financial consequences. A company has transactional currency exposures that
are denominated in a currency other than the functional currencies of entities.
According to Hong Leong Investment Bank (HLIB) Research, the strong and
strengthening US dollar would be positive for some sectors such as rubber product
manufacturers, the gaming industry as well as technology companies (Zainul, 2016).
The research further pointed out that the cheaper ringgit does not necessarily translate
to higher exports for Malaysian products, companies such as rubber glove makers,
semiconductors and furniture-related companies are expected to benefit from the
weaker ringgit, according to analysts. On the other hand, it is negative for sectors such
as automotive, aviation, telecommunications, consumer products and power (Zainul,
2016).
From the sector of consumer product, we focus on the foreign exchange issues within
food manufacturing industry and the jewellery industry. Malaysia Retailer-Chains
Association (MRCA) expects a more challenging business environment ahead on
higher cost of doing business from rationalisation of government subsidies and the
depreciation in Malaysian ringgit. Most of the members of MRCA import raw materials
from overseas, which are badly impacted over the depreciation in local currency (The
Malaysian Reserve, 2017).
19
Impact of Foreign Exchange on Food Manufacturing Industry
In food manufacturing industry especially food and beverage companies, they are
facing a double whammy, hit by high sugar prices as well as the strong US dollar since
2016 (Aruna, 2017). The price of raw sugar has spiked 13.2%, trade at about 20.6 US
cents per lb at the end of January 2017, higher than the average sugar price of 18.2 US
cents per lb 2015. For an example easy to be seen is the Beverage maker Fraser &
Neave Holdings Bhd (F&N), one of the largest firm which shows a profits dip due to
the higher costs of the raw material, which is denominated in US dollar such as sugar,
milk, whey powder, soya beans and the aluminium. This hits the operating profit of
F&N decrease by 26.1% from RM81.6mil to RM60.4mil at the first quarter ended Dec
31, 2016 and the net profit has dropped to RM127.3 million as well. CIMB research
has made an explanation supporting on this by showing that F&N hedges a significant
amount of its US dollar exposure on pledged raw material purchases and leaves only a
small portion unhedged. UOB research further explained that, sugar and milk has
accounted for about 25% and 45% of the cost of goods sold among F&N (Aruna, 2017).
Besides beverage maker, the snack food and confectionery manufacturers is

experiencing the challenges of rising production costs as well due to the 24% hike in
the price of a 25kg per bag of wheat flour (Chua, 2017). In additional, many relevant
food industries attributed the poor earnings to slower sales overseas and thinner margins
due to the rising raw material prices (Chua, 2017).
Financial market across the world were impacted by global economic volatility in 2016.
However, this high material cost seems like not affecting much on Nestle in 2016 and
Nestle has achieved a good growth in a difficult year (Nestle, 2016). The turnover for
the financial year ended 31 December 2016 hit a record high, increasing by 4.7% to
cross the RM5 billion mark among past 5 years. According to the Kenaga’s Research,
this outstanding performance are the outcome of the better performance and strong
growth in both domestic and export business as well. In other words, Nestle
performance do not affected much by the foreign exchange issue. In the first half of
2017 (1H17), the gross profit of Nestle saw a 3% year-on-year decline and 14% quarter-
on-quarter fall, likely due to higher unfavourable foreign exchange (forex) exposures
towards imported commodities.
20
In short, there is the lacklustre ringgit, which affects manufacturers that derive a portion
of their revenue from export sales and when purchasing raw materials like gold, sugar,
milk, cocoa and palm oil that are tied to global commodity prices (Chua, 2017).
Impact of Foreign Exchange on Jewellery Industry

Today, Malaysian jewellery industry is one of the few among the world to offer the
highest variety or blend of cultures that every jewellery piece talks about the country’s
history and every jewel has a story to tell. Malaysian exports have risen year on year
and feels pride in making United Arab Emirates its biggest export partner. Malaysian
jewellers too have evolved with time and today the jewellers from the land of Gold
reach out far and wide to take their products and services into International markets.
Malaysia has an unrivalled manufacturing set up that produces state of the art jewellery
range to suit the consumer tastes of varied economies. This variety in production and
exports is a reality today due to the influx and influences of Arabic, Chinese, Indian,
European and many other cultures that had donned Malaysia which we call a
cosmopolitan era.
Gems and jewellery industry in developed countries like US and European countries is
highly dependent on import for sourcing of raw materials such as rough diamond and
gold bars. The export value of gems and jewelleries amounted to US$32 billion, where
Hong Kong appeared to be the largest export destination (Thesundaily.my, 2017). The
gold jewellery exports in 2016 for Malaysia is valued at RM7.2 billion. Malaysia export
jewellery and gold to more than 20 countries such as Japan, United States, Germany,
United Arab Emirates (UAE), Canada, Hong Kong, Thailand, Philippines and
Singapore.
The jewellery industry in Malaysia have been exposed to the foreign exchange risk with
the continuous strengthening of US Dollars. The main impact of US Dollars is on the
gold price which is in its inverse relationship. The gold price started to drop since the
rising of dollars and substantially affects the revenue of the industry. However, the
weaker Ringgit has pushed the gold price higher in Ringgit terms, therefore making it
more attractive to investors. Gold is considered a “safe haven” asset that encourages
consumers to purchase as an alternative investment to hedge against a declining Ringgit.
The financial market volatility have also boosted the appeal of gold as a store of value
and therefore, the jewellery companies may benefit from that.
21
Besides, the operations of jewellery business are closely related and affected by the
fluctuation US Dollars and gold price in term of import and export. Transactional
currency exposures mainly arose from transactions that are denominated in currencies
other than functional currencies of operating entities. This challenge is especially
experienced by jewellery companies that import raw materials from foreign countries
and transacted in dollars. Due to further strengthening in the US dollar against other
currencies, companies have to pay a higher value for their imported goods in dollars.
In contrast, when companies are paid in dollars for their exports and then convert that
cash into local currencies, the values of those currencies rise.
Tomei Consolidated Bhd as one of the well-known local jewellery company reported a
net loss of RM1, 540,000 in the financial year 2015 mainly due to losses arising from
foreign exchange and gold price fluctuations. The retail segment reported a loss before
tax (LBT) of RM0.397 million resulted from the lower sales in 2015. The retail segment
currently contributed approximately 75% of the total Group’s revenue and as a result,
the Group’s revenue is very sensitive towards the general retail market sentiment.
Hence, the financial performance may be significantly impacted by the fluctuation of
international gold price which is closely related to the fluctuation of US Dollar. This
fluctuation poses a risk to profitability as any adverse movement could affect the
company profit margin. Besides, the company is also exposed to the risk of fluctuation
in foreign currency as most of the raw material of gold and jewellery are purchased
from foreign countries and invoiced in US Dollar while the retail sales are in Ringgit.
Lastly, another main reason of losses is that the Group does not use derivative financial
instruments to hedge its risk. The Group should monitor the movements in foreign
currency exchange rates closely to ensure that its risk to transactional currency
exposures is minimal.
On the other hand, the largest jewellery chain in Malaysia, Poh Kong Holdings Bhd is
not significantly affected by the weakening of the Ringgit against the USD. The foreign
currency risk has no significant impact on Poh Kong’s operational costs as all its
borrowings are transacted in Ringgit Malaysia. Besides, Poh Kong purchases its raw
materials in ringgit, adding local purchases of its jewelry products are also denominated
in ringgit. Although Poh Kong imported as the sole distributor for some world-
renowned international jewellery brands from Italian and Germany which are
denominated in US Dollars, the revenue generated from high demand and sales derived
22
locally are sufficient to cover the currency loss and hence maintain its profitability. The
Group is optimistic that the demand for gold and gold related products will still remain
resilient notwithstanding the uncertainty in the global and subdued domestic economy
affected by a weaker Ringgit, higher cost-of-living and prudent consumer spending.
Moreover, depreciation of ringgit has some positive impact for the industries, where
people will turn to buy gold for investments.
To stem the steep and continuous falling currency, Malaysia's central bank introduced
a regulation last December requiring exporters to convert at least 75% of their proceeds
earned in foreign currencies into ringgit. The measure is raising concerns of higher
operating costs among foreign businesses operating in the country.
23
Chapter 4 Literature Review
Exchange rate is a vital price in an open economy as its volatility aﬀects the value of
assets owned by both foreign portfolio and direct investors as well as those owned by
domestic investors. As the exchange rate appreciates, assets grows in value and in
contrast, declines in value as the exchange rate depreciates. According to Mishra et al.
(2007), the influence of the currency devaluation on both importers and exporters is
noticeable. Exchange rate volatility has been a source of concern in many economies
including South Africa.
Exchange rates can affect stock prices not only for multinational and export oriented
firms but also for domestic firms. For a multinational company, changes in exchange
rates will result in both an immediate change in value of its foreign operations and a
continuing change in the profitability of its foreign operations reflected in successive
income statements. Therefore, the changes in economic value of firm’s foreign
operations may influence stock prices. Domestic firms can also be influenced by
changes in exchange rates since they may import a part of their inputs and export their
outputs. For example, a devaluation of its currency makes imported inputs more
expensive and exported outputs cheaper for a firm. Thus, devaluation will make
positive effect for export firms (Aggarwal, 1981) and increase the income of these firms,
consequently, boosting the average level of stock prices (Wu, 2000).
Chang (2001) find that the change of exchange rate has a significant effect on the
returns of most export-oriented industries in Taiwan’s stock market around the Asian
financial crisis. The most of export-oriented industries are positively affected by the
depreciation of the New Taiwan Dollars (NTD) against the US Dollars (USD). But
Chang (2001) did not show a clear conclusion about the import-oriented industries.
Cheng et el, (2011) in their study covering electronic industries in Taiwan found that
exchange rate was significant and had a positive effect on stock returns. Hsing, (2011)
examined the effects of selected macroeconomic variables on the stock market index of
Johannesburg Stock Exchange in South Africa. His study used EGARCH model and
the estimates found a positive relationship between exchange rate and the stock market.
Additionally, a study by Kandir (2008) on Turkey to determine the relationship between

exchange rate and stock return showed that exchange rate has a positive relationship
with portfolio return. Joseph and Vezos, (2006) in their study on the understanding of
24
stock returns to exchange rates in US banks found a strong deviation in foreign
exchange rate sensitivity by financial division of banks.
Mishra (2004) carried a study on stock market and foreign exchange market in India
and found a significant positive relationship between stock prices and exchange rates.
Similarly, Apte,(2001) examined the interrelationship between the stock markets and
the foreign exchange market and found a significant positive relationship between
exchange rates and stock prices.
In a study carried out by Jefferies and Okeahalam, (2000) on the relationship between
stock prices and selected economic variables for South Africa, Zimbabwe and
Botswana, the results revealed that in South Africa, stock return volatility was
positively affected by real exchange rate. A study carried by Bailey and Chung, (1995)
on exchange rate fluctuations, political risk, and stock returns at the Mexican stock
market that established a positive relationship between exchange rate changes and stock
market return volatility.
In the contrary, Chang et al, (2013) examined the effects of volatility spillovers for firm
performance and exchange rates with asymmetry in the Taiwan found a negative
correlation between exchange rate returns and stock returns. Aroni,(2011) analyzed
factors influencing stock prices for firms listed in NSE and the results showed that
there is a negative correlation between foreign exchange rate fluctuations and stock
returns. Olweny and Omondi, (2011) studied the effects of macroeconomic factors on
stock return volatility at the Nairobi Securities Exchange with foreign exchange rate
being one of the explanatory factors. The results showed that foreign exchange rate
affect stock return volatility negatively.
Adjasi et al, (2008) carried a study in Ghana stock exchange on the effect of exchange
rate and the results showed that exchange rate volatility and stock market returns had a
negative relationship. To be specific a reduction in stock prices reduces wealth of local
investors and further reduces liquidity in the economy. This is consistent with Abugri,
(2008) who carried out a study in four Latin American countries on the impact of
macroeconomic variables on stock prices. For United States, the results revealed that
the stock price was negatively influenced by the exchange rate.
Liu and Shrestha, (2008) observed existence of a strong association among Chinese
stock market and macroeconomic variables. A negative and inverse relationship was
25
observed between currency value and stock prices. Though stock market was observed
risky in the short run, outcomes proved that economic basics prevail in the long run.
Regardless of short term unpredictability, as Chinese market has a negative association
with USA and other developed markets, it can offer shareholders with variegation and
superior long-term returns.
Adjasi and Biekpe,(2005) showed that in the long-run, exchange rate depreciation leads
to increase in stock market prices in some of the countries and in the short-run exchange
rate depreciation reduces stock market returns. The empirical results show a negative
correlation between exchange rate returns and stock returns. Subair and Salihu, (2004)
also carried a study on the exchange rate volatility and the stock market in Nigeria and
found that the exchange rate volatility had a negative impact on the stock markets.
However, Brooks, et al, (2010) undertook an analysis on foreign exchange rate

exposure of Australian firms and found that a greater part of firms experienced positive
foreign exchange rate exposure than negative one. The strongest degree of exposure
was observed in the energy, materials and industrial sectors. Australian firms illustrated
irregularity and time variation in exchange rate exposure with varying results in
different sectors.
At the macro level, Abdalla and Murinde (1997) investigated the interaction between
the real effective exchange rates and stock prices in Korea, India, Pakistan and the
Philippines. They found unidirectional causalities from exchange rates to stock prices
in all sample countries except in the Philippines. Also, Granger et al. (2000) studied the
causal relationships between exchange rates and stock prices. Their study reported that
the data from South Korea were consistent with the traditional approach that exchange
rates lead stock prices. Conversely, the data for the Philippines were consistent with the
portfolio approach: stock prices lead exchange rates with negative correlation. Data
from Hong Kong, Singapore, Malaysia, Taiwan and Thailand indicated strong feedback
relations. The data for Japan and Indonesia did not find any causal relationship.
In Malaysia, Ibrahim (2000) examined both bivariate and multivariate cointegration

and Granger causality between exchange rates and stock prices. This study used three
measures of exchange rate, nominal effective exchange rate, real effective exchange
rate and the exchange rate between the Malaysian ringgit and the US dollar. This study
did not find any counteracting relationship between exchange rate measures and stock
26
prices in the bivariate models, but there was co-integration between measures of
exchange rate and stock prices when money supply and reserves were included in the
cointegrating relationship. Findings of the multivariate model indicated that a concerted
stance on exchange rate, monetary and reserve policies is vital for stock market stability,
in the short run.
In short, some scholars like Jefferis and Okeahalam, (2000), Hsing, (2011), Cheng' et
al (2011) have documented a positive relationship between foreign exchange rate and
stock returns. Other scholars like Chang et al (2013) Aroni (2011), Olweny and Omondi
(2011) Brooks et al. (2010) and Subair and Salihu (2004), show a negative relationship
between foreign exchange rate and stock returns volatility- depreciation in the local
currency leads to increases in stock market prices in the long run. There is therefore no
convergence on the evidence on the previous studies empirical literature.
In this study, secondary sources such as official records, reports and legal websites. The
data was based on the Bursa Malaysia Securities Exchange daily stock prices for the
period between January 2016 and December 2016. The prevailing exchange rates for
the same period were selected. Statistical tests were carried out to determine the
relationships between shares sales and value of the foreign exchange rates using SPSS
and MS EXCEL.
A Pearson product-moment correlation coefficient test was used to assess the

relationship between USD exchange rates and the daily stock prices for the selected
stocks listed. Pearson's r measures the strength and direction (decreasing or increasing,
depending on the sign) of a linear relationship between two variables X and Y which X
(independent variable) will be USD exchange rate and Y (dependent variable) will be
the company stock price.
As this study aims to examine the relationship between exchange rate and stock returns,
we use the linear regression model to examine whether the impact of foreign exchange
rate volatility display any firm-specific factors which will be reflected by its stock
prices. Only one independent variable which is the USD exchange rate has been
included in this analysis with the dependent variable which is the company stock price.
Linear regression model has also been widely adopted in past literatures on exchange
rates and stock returns (Jorion, 1990; He and Ng, 1998; Chen et al., 2004; Bartram &
Bodnar, 2009).
27
Chapter 5 Data Collection
(A) FRASER & NEAVE HOLDING BHD (F&N) (3689)
Date Open Close Average Date Open Close Average Date Open Close Average Date Open Close Average
Jan 2016, 4 18.50 18.50 18.50 Feb 2016, 2 18.30 18.28 18.29 Mar 2016,1 19.88 19.78 19.83 Apr 2016, 1 20.40 20.80 20.60
5 18.50 18.50 18.50 3 18.46 18.56 18.51 2 19.80 19.80 19.80 4 21.28 20.90 21.09
6 18.46 18.46 18.46 4 18.58 18.60 18.59 3 19.84 19.68 19.76 5 20.60 20.68 20.64
7 18.46 18.50 18.48 5 18.60 18.60 18.60 4 19.60 19.62 19.61 6 20.68 20.56 20.62
8 18.44 18.52 18.48 8 18.60 18.60 18.60 7 19.72 19.68 19.70 7 20.50 20.40 20.45
11 18.50 18.56 18.53 9 18.60 18.60 18.60 8 19.68 19.94 19.81 8 20.42 20.40 20.41
12 18.60 18.56 18.58 10 18.70 18.90 18.80 9 19.92 19.98 19.95 11 20.40 20.30 20.35
13 18.56 18.54 18.55 11 18.92 19.10 19.01 10 19.98 19.90 19.94 12 20.30 20.30 20.30
14 18.50 18.54 18.52 12 19.10 19.60 19.35 11 19.90 19.90 19.90 13 20.32 20.28 20.30
15 18.40 18.40 18.40 15 19.60 19.58 19.59 14 19.90 19.90 19.90 14 20.30 20.16 20.23
18 18.40 18.40 18.40 16 19.50 19.50 19.50 15 20.00 19.90 19.95 15 20.16 20.26 20.21
19 18.40 18.38 18.39 17 19.48 19.68 19.58 16 19.90 19.88 19.89 18 20.28 20.18 20.23
20 18.38 18.38 18.38 18 19.70 19.70 19.70 17 19.90 19.80 19.85 19 20.50 20.40 20.45
21 18.30 18.36 18.33 19 19.70 19.90 19.80 18 20.00 19.78 19.89 20 20.42 20.40 20.41
22 18.30 18.20 18.25 22 19.90 19.88 19.89 21 19.78 19.74 19.76 21 20.68 21.00 20.84
26 18.20 18.30 18.25 23 19.90 19.88 19.89 22 19.74 19.74 19.74 22 21.28 21.22 21.25
27 18.30 18.30 18.30 24 19.90 19.84 19.87 23 19.98 19.76 19.87 25 21.20 22.28 21.74
28 18.30 18.30 18.30 25 19.92 19.86 19.89 24 null null null 26 22.36 22.20 22.28
29 18.30 18.30 18.30 26 20.00 19.98 19.99 25 19.70 19.70 19.70 27 22.20 22.60 22.40
29 19.98 19.80 19.89 28 19.70 19.72 19.71 28 22.60 23.00 22.80
29 19.98 20.50 20.24 29 23.18 22.60 22.89
30 20.50 20.78 20.64
31 20.80 20.70 20.75
28
May 2016,3 22.60 22.40 22.50 Jun 2016, 1 23.94 23.80 23.87 Jul 2016, 1 25.30 25.20 25.25 Aug 2016,1 25.70 26.08 25.89
4 22.46 22.18 22.32 2 24.00 23.90 23.95 4 25.48 25.58 25.53 2 26.00 26.34 26.17
5 22.44 22.18 22.31 3 23.96 24.06 24.01 5 25.70 26.00 25.85 3 26.46 26.10 26.28
6 22.40 22.24 22.32 6 24.00 24.00 24.00 6 26.00 26.00 26.00 4 26.30 25.26 25.78
9 22.28 23.42 22.85 7 24.10 24.50 24.30 7 26.00 26.00 26.00 5 25.26 24.44 24.85
10 23.50 23.46 23.48 8 24.48 24.50 24.49 8 26.00 26.00 26.00 8 24.50 24.04 24.27
11 23.50 23.50 23.50 9 24.48 24.50 24.49 11 26.60 26.20 26.40 9 24.04 24.98 24.51
12 23.70 23.50 23.60 10 24.48 24.48 24.48 12 26.20 25.88 26.04 10 24.96 25.30 25.13
13 23.60 23.54 23.57 13 24.48 24.48 24.48 13 25.96 25.88 25.92 11 25.30 25.00 25.15
16 23.54 23.40 23.47 14 24.48 24.48 24.48 14 25.98 26.00 25.99 12 24.94 24.70 24.82
17 23.70 23.40 23.55 15 24.50 25.32 24.91 15 26.28 26.22 26.25 15 24.60 24.62 24.61
18 23.40 23.70 23.55 16 25.00 25.40 25.20 18 26.20 26.18 26.19 16 24.90 24.52 24.71
19 23.68 23.48 23.58 17 25.50 25.30 25.40 19 26.30 26.10 26.20 17 24.60 24.50 24.55
20 23.70 23.60 23.65 20 25.22 25.50 25.36 20 26.20 26.08 26.14 18 24.88 24.44 24.66
23 23.80 23.60 23.70 21 25.40 25.30 25.35 21 26.08 26.10 26.09 19 24.44 24.50 24.47
24 23.60 23.44 23.52 23 25.30 25.30 25.30 22 26.00 26.02 26.01 22 24.36 24.50 24.43
25 23.70 23.46 23.58 24 25.30 24.90 25.10 25 26.00 26.06 26.03 23 24.50 24.44 24.47
26 23.46 23.60 23.53 27 24.90 24.92 24.91 26 26.10 26.04 26.07 24 24.40 24.42 24.41
27 23.78 23.80 23.79 28 null null null 27 25.84 25.92 25.88 25 24.30 24.40 24.35
30 23.70 23.74 23.72 29 null null null 28 25.92 25.80 25.86 26 24.50 24.42 24.46
31 23.70 23.70 23.70 30 25.50 25.12 25.31 29 25.70 25.60 25.65 29 24.40 24.40 24.40
30 24.20 24.40 24.30
29
Sep 2016, 1 24.40 24.58 24.49 Oct 2016, 4 24.06 23.74 23.90 Nov 2016, 1 24.30 24.54 24.42 Dec 2016, 1 23.00 22.82 22.91
2 25.00 24.92 24.96 5 23.74 24.10 23.92 2 24.50 24.40 24.45 2 22.62 22.56 22.59
5 24.92 24.88 24.90 6 24.20 24.02 24.11 3 24.14 24.30 24.22 5 22.90 22.58 22.74
6 24.86 24.52 24.69 7 24.30 23.92 24.11 4 24.30 24.40 24.35 6 22.56 23.40 22.98
7 24.50 24.52 24.51 10 23.90 24.18 24.04 7 24.22 24.24 24.23 7 23.30 23.40 23.35
8 24.52 24.54 24.53 11 23.92 24.00 23.96 8 24.20 24.26 24.23 8 23.30 23.40 23.35
9 24.50 24.54 24.52 12 24.00 23.98 23.99 9 24.10 24.28 24.19 9 23.30 23.14 23.22
13 24.54 24.54 24.54 13 24.46 24.50 24.48 10 24.12 24.36 24.24 13 23.14 23.14 23.14
14 24.48 24.48 24.48 14 24.72 24.50 24.61 11 24.14 24.40 24.27 14 23.40 23.14 23.27
15 24.50 24.50 24.50 17 24.52 24.46 24.49 14 24.42 24.26 24.34 15 23.38 23.10 23.24
19 24.50 24.44 24.47 18 24.10 24.44 24.27 15 24.26 24.22 24.24 16 23.10 23.00 23.05
20 24.40 24.50 24.45 19 24.18 24.10 24.14 16 24.26 23.74 24.00 19 23.00 22.98 22.99
21 24.50 24.30 24.40 20 24.40 24.10 24.25 17 23.80 23.58 23.69 20 22.98 22.98 22.98
22 24.30 24.38 24.34 21 24.10 24.42 24.26 18 23.80 23.60 23.70 21 23.20 22.90 23.05
23 24.32 24.38 24.35 24 24.10 24.26 24.18 21 23.56 23.62 23.59 22 22.88 22.86 22.87
26 24.30 24.38 24.34 25 24.26 24.30 24.28 22 23.32 23.58 23.45 23 22.86 22.86 22.86
27 24.36 24.20 24.28 26 24.22 24.48 24.35 23 23.50 23.60 23.55 27 22.86 22.86 22.86
28 24.10 24.18 24.14 27 24.22 24.20 24.21 24 23.40 23.60 23.50 28 22.86 22.86 22.86
29 24.28 24.06 24.17 28 24.20 24.38 24.29 25 23.32 23.32 23.32 29 23.00 23.20 23.10
30 24.06 24.06 24.06 31 24.38 24.48 24.43 28 23.20 23.30 23.25 30 22.90 23.48 23.19
29 23.20 23.18 23.19
30 23.10 23.00 23.05
30
(B) NESTLE (MALAYSIA) BHD (4707)
Jan 2016, 4 73.40 73.40 73.40 Feb 2016, 2 74.00 74.02 74.01 Mar 2016,1 74.20 74.18 74.19 Apr 2016, 1 75.10 75.00 75.05
5 73.40 73.40 73.40 3 74.08 74.12 74.10 2 74.20 74.20 74.20 4 75.00 74.96 74.98
6 73.40 73.40 73.40 4 74.30 74.68 74.49 3 74.20 74.20 74.20 5 75.50 74.90 75.20
7 73.40 73.40 73.40 5 74.80 74.50 74.65 4 75.00 74.20 74.60 6 74.90 74.90 74.90
8 73.34 73.50 73.42 8 74.50 74.50 74.50 7 74.22 74.20 74.21 7 75.08 74.78 74.93
11 73.40 73.50 73.45 9 74.50 74.50 74.50 8 74.08 74.00 74.04 8 74.70 74.70 74.70
12 73.42 73.44 73.43 10 74.80 75.00 74.90 9 74.00 74.00 74.00 11 74.52 74.44 74.48
13 73.44 73.44 73.44 11 74.80 74.80 74.80 10 74.00 73.96 73.98 12 75.00 75.00 75.00
14 73.40 73.44 73.42 12 74.80 74.88 74.84 11 73.98 73.96 73.97 13 75.00 75.00 75.00
15 73.34 73.50 73.42 15 74.88 75.00 74.94 14 74.00 75.50 74.75 14 75.00 75.00 75.00
18 73.50 73.50 73.50 16 74.90 75.00 74.95 15 75.40 75.40 75.40 15 75.00 74.60 74.80
19 73.50 73.50 73.50 17 75.10 75.12 75.11 16 74.10 74.10 74.10 18 74.60 74.60 74.60
20 73.42 73.42 73.42 18 75.10 75.10 75.10 17 74.18 74.98 74.58 19 75.00 74.92 74.96
21 73.42 73.42 73.42 19 74.60 74.44 74.52 18 74.98 74.50 74.74 20 75.00 75.00 75.00
22 73.32 73.32 73.32 22 74.44 75.00 74.72 21 74.50 75.30 74.90 21 75.30 74.70 75.00
26 73.32 73.30 73.31 23 74.92 74.58 74.75 22 75.30 75.30 75.30 22 75.10 74.70 74.90
27 73.50 73.10 73.30 24 74.88 74.68 74.78 23 75.40 75.48 75.44 25 74.70 75.00 74.85
28 73.50 73.50 73.50 25 74.68 74.56 74.62 24 null null null 26 75.00 75.00 75.00
29 73.94 74.00 73.97 26 74.56 74.24 74.40 25 75.20 75.00 75.10 27 75.22 75.04 75.13
29 74.22 74.20 74.21 28 74.90 74.60 74.75 28 75.50 75.10 75.30
29 74.60 75.00 74.80 29 75.10 74.98 75.04
30 74.50 74.90 74.70
31 74.82 76.90 75.86
31
May 2016,3 74.98 74.90 74.94 Jun 2016, 1 76.00 76.00 76.00 Jul 2016, 1 77.00 76.90 76.95 Aug 2016,1 80.88 79.40 80.14
4 74.68 74.50 74.59 2 76.20 76.00 76.10 4 77.00 76.98 76.99 2 79.30 79.40 79.35
5 74.62 74.50 74.56 3 76.02 76.02 76.02 5 77.00 76.70 76.85 3 80.00 79.40 79.70
6 75.00 75.00 75.00 6 76.00 76.00 76.00 6 76.70 76.70 76.70 4 79.40 79.40 79.40
9 75.60 75.20 75.40 7 76.00 76.10 76.05 7 76.70 76.70 76.70 5 79.40 79.68 79.54
10 75.36 76.00 75.68 8 76.40 76.60 76.50 8 76.70 76.70 76.70 8 79.68 79.64 79.66
11 75.50 75.52 75.51 9 76.68 76.68 76.68 11 77.00 76.96 76.98 9 80.22 79.74 79.98
12 76.00 75.02 75.51 10 76.68 76.60 76.64 12 77.00 76.80 76.90 10 79.38 80.08 79.73
13 75.12 75.10 75.11 13 76.60 76.60 76.60 13 76.80 76.76 76.78 11 80.06 80.00 80.03
16 75.12 75.10 75.11 14 76.90 76.60 76.75 14 76.80 77.00 76.90 12 80.08 79.60 79.84
17 74.50 74.52 74.51 15 77.00 76.58 76.79 15 77.00 79.98 78.49 15 79.70 79.80 79.75
18 74.58 74.60 74.59 16 77.00 76.58 76.79 18 79.98 79.90 79.94 16 80.00 79.10 79.55
19 74.60 75.00 74.80 17 76.80 76.80 76.80 19 79.98 80.00 79.99 17 79.20 79.10 79.15
20 75.00 75.38 75.19 20 76.80 76.70 76.75 20 80.00 79.90 79.95 18 79.10 78.98 79.04
23 75.00 75.52 75.26 21 77.00 76.70 76.85 21 79.50 79.60 79.55 19 78.98 79.00 78.99
24 75.70 75.52 75.61 23 76.70 76.70 76.70 22 79.50 79.80 79.65 22 79.00 78.76 78.88
25 75.50 76.00 75.75 24 77.00 76.14 76.57 25 79.80 79.80 79.80 23 80.30 78.92 79.61
26 75.70 76.00 75.85 27 76.20 76.14 76.17 26 79.78 79.40 79.59 24 79.14 78.90 79.02
27 75.90 75.52 75.71 28 null null null 27 79.80 79.00 79.40 25 79.00 78.80 78.90
30 76.00 75.54 75.77 29 null null null 28 79.00 78.90 78.95 26 78.90 79.00 78.95
31 76.00 76.00 76.00 30 77.00 76.52 76.76 29 79.20 79.00 79.10 29 79.00 78.50 78.75
30 78.50 78.84 78.67
32
Sep 2016, 1 79.00 80.00 79.50 Oct 2016, 4 78.86 79.00 78.93 Nov 2016, 1 78.10 78.38 78.24 Dec 2016, 1 76.00 75.76 75.88
2 79.90 80.02 79.96 5 79.98 78.72 79.35 2 78.88 78.38 78.63 2 76.20 76.00 76.10
5 80.30 80.00 80.15 6 78.72 78.52 78.62 3 78.40 78.30 78.35 5 76.10 76.24 76.17
6 80.00 79.52 79.76 7 78.52 78.50 78.51 4 78.48 78.30 78.39 6 76.12 76.10 76.11
7 80.28 80.60 80.44 10 78.60 78.20 78.40 7 78.30 78.30 78.30 7 76.16 76.12 76.14
8 79.62 80.00 79.81 11 78.30 78.20 78.25 8 78.40 78.30 78.35 8 77.22 76.20 76.71
9 80.80 80.00 80.40 12 78.20 78.98 78.59 9 78.40 78.26 78.33 9 76.24 76.30 76.27
13 80.00 80.00 80.00 13 79.48 79.00 79.24 10 78.32 78.26 78.29 13 76.30 76.60 76.45
14 79.62 80.02 79.82 14 79.10 78.38 78.74 11 78.76 78.26 78.51 14 76.60 76.60 76.60
15 79.72 79.90 79.81 17 78.40 78.10 78.25 14 78.24 78.24 78.24 15 76.76 78.50 77.63
19 79.90 79.90 79.90 18 78.10 78.14 78.12 15 78.24 78.30 78.27 16 76.60 78.40 77.50
20 79.72 79.60 79.66 19 78.20 78.20 78.20 16 78.30 78.08 78.19 19 77.18 78.40 77.79
21 80.52 79.52 80.02 20 78.30 78.18 78.24 17 78.00 78.50 78.25 20 78.40 78.30 78.35
22 79.50 79.44 79.47 21 78.40 78.18 78.29 18 78.50 78.00 78.25 21 78.00 78.60 78.30
23 79.50 79.28 79.39 24 78.18 78.20 78.19 21 77.50 77.58 77.54 22 78.64 78.28 78.46
26 79.28 79.20 79.24 25 78.50 78.20 78.35 22 77.50 77.60 77.55 23 78.06 78.34 78.20
27 79.20 79.18 79.19 26 78.24 78.40 78.32 23 77.60 77.50 77.55 27 78.34 77.40 77.87
28 80.00 79.22 79.61 27 78.96 78.40 78.68 24 77.50 77.00 77.25 28 77.50 78.50 78.00
29 79.20 79.00 79.10 28 78.80 78.40 78.60 25 77.40 76.74 77.07 29 77.24 77.80 77.52
30 79.20 78.86 79.03 31 78.92 78.38 78.65 28 76.72 76.62 76.67 30 78.40 78.20 78.30
29 76.68 76.52 76.60
30 76.52 75.98 76.25
33
(C) POH KONG HOLDINGS BHD (5080)
Jan 2016, 4 0.53 0.53 0.53 Feb 2016, 2 0.50 0.50 0.50 Mar 2016,1 0.55 0.56 0.56 Apr 2016, 1 0.51 0.51 0.51
5 0.52 0.54 0.53 3 0.49 0.49 0.49 2 0.57 0.55 0.56 4 0.51 0.51 0.51
6 0.54 0.54 0.54 4 0.50 0.49 0.49 3 0.55 0.55 0.55 5 0.52 0.52 0.52
7 0.54 0.53 0.53 5 0.49 0.50 0.50 4 0.55 0.56 0.56 6 0.52 0.52 0.52
8 0.52 0.53 0.53 8 0.50 0.50 0.50 7 0.57 0.57 0.57 7 0.52 0.51 0.52
11 0.54 0.54 0.54 9 0.50 0.50 0.50 8 0.57 0.58 0.57 8 0.52 0.52 0.52
12 0.53 0.54 0.53 10 0.50 0.52 0.51 9 0.58 0.57 0.57 11 0.52 0.52 0.52
13 0.53 0.52 0.52 11 0.53 0.55 0.54 10 0.57 0.57 0.57 12 0.52 0.52 0.52
14 0.52 0.52 0.52 12 0.55 0.54 0.54 11 0.57 0.56 0.57 13 0.52 0.52 0.52
15 0.52 0.51 0.51 15 0.54 0.56 0.55 14 0.56 0.55 0.55 14 0.52 0.52 0.52
18 0.51 0.50 0.50 16 0.55 0.52 0.53 15 0.55 0.54 0.54 15 0.52 0.52 0.52
19 0.50 0.51 0.50 17 0.52 0.55 0.54 16 0.53 0.55 0.54 18 0.51 0.51 0.51
20 0.50 0.51 0.50 18 0.55 0.53 0.54 17 0.55 0.55 0.55 19 0.52 0.52 0.52
21 0.50 0.49 0.50 19 0.54 0.52 0.53 18 0.55 0.54 0.55 20 0.52 0.53 0.53
22 0.49 0.50 0.49 22 0.53 0.53 0.53 21 0.54 0.54 0.54 21 0.53 0.53 0.53
26 0.50 0.49 0.50 23 0.53 0.53 0.53 22 0.54 0.54 0.54 22 0.53 0.53 0.53
27 0.50 0.50 0.50 24 0.53 0.55 0.54 23 0.55 0.53 0.54 25 0.52 0.52 0.52
28 0.50 0.49 0.49 25 0.55 0.55 0.55 24 null null null 26 0.51 0.51 0.51
29 0.49 0.50 0.50 26 0.55 0.54 0.55 25 0.52 0.52 0.52 27 0.50 0.51 0.50
29 0.54 0.55 0.54 28 0.52 0.51 0.51 28 0.51 0.51 0.51
29 0.51 0.51 0.51 29 0.51 0.51 0.51
30 0.51 0.51 0.51
31 0.51 0.52 0.51
34
May 2016,3 0.51 0.52 0.51 Jun 2016, 1 0.51 0.50 0.50 Jul 2016, 1 0.49 0.50 0.50 Aug 2016,1 0.51 0.51 0.51
4 0.51 0.51 0.51 2 0.50 0.50 0.50 4 0.49 0.50 0.49 2 0.51 0.51 0.51
5 0.51 0.52 0.51 3 0.51 0.50 0.50 5 0.51 0.50 0.50 3 0.51 0.51 0.51
6 0.51 0.51 0.51 6 0.50 0.50 0.50 6 0.50 0.50 0.50 4 0.51 0.51 0.51
9 0.51 0.51 0.51 7 0.50 0.49 0.49 7 0.50 0.50 0.50 5 0.50 0.51 0.50
10 0.50 0.51 0.51 8 0.49 0.50 0.49 8 0.51 0.51 0.51 8 0.50 0.50 0.50
11 0.51 0.51 0.51 9 0.49 0.50 0.50 11 0.51 0.51 0.51 9 0.50 0.50 0.50
12 0.51 0.51 0.51 10 0.51 0.51 0.51 12 0.51 0.52 0.51 10 0.50 0.50 0.50
13 0.52 0.52 0.52 13 0.51 0.51 0.51 13 0.51 0.52 0.51 11 0.50 0.50 0.50
16 0.51 0.51 0.51 14 0.51 0.51 0.51 14 0.50 0.50 0.50 12 0.50 0.50 0.50
17 0.52 0.52 0.52 15 0.50 0.52 0.51 15 0.50 0.50 0.50 15 0.50 0.50 0.50
18 0.51 0.51 0.51 16 0.51 0.50 0.50 18 0.50 0.50 0.50 16 0.50 0.50 0.50
19 0.51 0.51 0.51 17 0.50 0.50 0.50 19 0.51 0.51 0.51 17 0.51 0.50 0.50
20 0.51 0.51 0.51 20 0.49 0.49 0.49 20 0.51 0.51 0.51 18 0.51 0.50 0.50
23 0.51 0.51 0.51 21 0.49 0.50 0.49 21 0.50 0.50 0.50 19 0.50 0.50 0.50
24 0.52 0.52 0.52 23 0.50 0.49 0.49 22 0.51 0.51 0.51 22 0.50 0.50 0.50
25 0.51 0.51 0.51 24 0.49 0.50 0.49 25 0.50 0.50 0.50 23 0.50 0.50 0.50
26 0.51 0.51 0.51 27 0.51 0.52 0.51 26 0.51 0.51 0.51 24 0.50 0.50 0.50
27 0.51 0.51 0.51 28 null null null 27 0.51 0.51 0.51 25 0.49 0.49 0.49
30 0.51 0.51 0.51 29 null null null 28 0.50 0.51 0.50 26 0.49 0.48 0.48
31 0.50 0.51 0.50 30 0.51 0.51 0.51 29 0.50 0.50 0.50 29 0.48 0.48 0.48
30 0.48 0.49 0.49
35
Sep 2016, 1 0.49 0.49 0.49 Oct 2016, 4 0.49 0.49 0.49 Nov 2016, 1 0.48 0.48 0.48 Dec 2016, 1 0.46 0.46 0.46
2 0.49 0.49 0.49 5 0.49 0.49 0.49 2 0.48 0.48 0.48 2 0.46 0.47 0.46
5 0.49 0.48 0.48 6 0.49 0.49 0.49 3 0.48 0.48 0.48 5 0.47 0.47 0.47
6 0.48 0.48 0.48 7 0.50 0.49 0.49 4 0.47 0.47 0.47 6 0.47 0.47 0.47
7 0.49 0.49 0.49 10 0.49 0.49 0.49 7 0.47 0.47 0.47 7 0.47 0.47 0.47
8 0.49 0.48 0.48 11 0.49 0.49 0.49 8 0.47 0.47 0.47 8 0.47 0.47 0.47
9 0.48 0.48 0.48 12 0.48 0.48 0.48 9 0.48 0.48 0.48 9 0.47 0.48 0.48
13 0.48 0.49 0.48 13 0.49 0.49 0.49 10 0.48 0.48 0.48 13 0.48 0.47 0.48
14 0.48 0.49 0.48 14 0.49 0.49 0.49 11 0.48 0.48 0.48 14 0.47 0.47 0.47
15 0.48 0.48 0.48 17 0.48 0.49 0.49 14 0.47 0.47 0.47 15 0.47 0.47 0.47
19 0.48 0.48 0.48 18 0.49 0.49 0.49 15 0.47 0.47 0.47 16 0.46 0.46 0.46
20 0.48 0.47 0.48 19 0.49 0.49 0.49 16 0.48 0.47 0.47 19 0.45 0.46 0.45
21 0.48 0.49 0.48 20 0.49 0.49 0.49 17 0.47 0.47 0.47 20 0.46 0.46 0.46
22 0.49 0.50 0.49 21 0.49 0.49 0.49 18 0.47 0.46 0.47 21 0.46 0.46 0.46
23 0.49 0.51 0.50 24 0.49 0.49 0.49 21 0.46 0.45 0.46 22 0.47 0.46 0.46
26 0.50 0.50 0.50 25 0.48 0.48 0.48 22 0.46 0.46 0.46 23 0.45 0.45 0.45
27 0.50 0.50 0.50 26 0.48 0.47 0.47 23 0.47 0.47 0.47 27 0.45 0.45 0.45
28 0.48 0.48 0.48 27 0.48 0.48 0.48 24 0.47 0.46 0.46 28 0.46 0.46 0.46
29 0.49 0.49 0.49 28 0.47 0.48 0.48 25 0.46 0.46 0.46 29 0.46 0.46 0.46
30 0.50 0.49 0.49 31 0.47 0.48 0.48 28 0.46 0.46 0.46 30 0.46 0.46 0.46
29 0.46 0.46 0.46
30 0.46 0.46 0.46
36
(D) TOMEI CONSOLIDATED BHD (7230)
Jan 2016, 4 0.53 0.53 0.53 Feb 2016, 2 0.46 0.46 0.46 Mar 2016,1 0.51 0.51 0.51 Apr 2016, 1 0.50 0.50 0.50
5 0.53 0.53 0.53 3 0.46 0.46 0.46 2 0.50 0.50 0.50 4 0.50 0.50 0.50
6 0.53 0.53 0.53 4 0.46 0.46 0.46 3 0.48 0.48 0.48 5 0.50 0.50 0.50
7 0.48 0.48 0.48 5 0.53 0.45 0.49 4 0.48 0.48 0.48 6 0.50 0.50 0.50
8 0.48 0.48 0.48 8 0.45 0.45 0.45 7 0.48 0.48 0.48 7 0.50 0.50 0.50
11 0.46 0.47 0.47 9 0.45 0.45 0.45 8 0.48 0.48 0.48 8 0.50 0.50 0.50
12 0.47 0.47 0.47 10 0.45 0.45 0.45 9 0.49 0.49 0.49 11 0.50 0.50 0.50
13 0.47 0.47 0.47 11 0.48 0.48 0.48 10 0.50 0.49 0.50 12 0.50 0.49 0.50
14 0.47 0.47 0.47 12 0.48 0.48 0.48 11 0.50 0.50 0.50 13 0.49 0.49 0.49
15 0.47 0.47 0.47 15 0.54 0.49 0.52 14 0.48 0.48 0.48 14 0.49 0.49 0.49
18 0.45 0.45 0.45 16 0.49 0.49 0.49 15 0.48 0.48 0.48 15 0.49 0.49 0.49
19 0.45 0.45 0.45 17 0.48 0.48 0.48 16 0.50 0.50 0.50 18 0.49 0.49 0.49
20 0.45 0.45 0.45 18 0.48 0.48 0.48 17 0.51 0.48 0.49 19 0.49 0.49 0.49
21 0.45 0.45 0.45 19 0.48 0.48 0.48 18 0.51 0.51 0.51 20 0.49 0.49 0.49
22 0.49 0.49 0.49 22 0.50 0.46 0.48 21 0.51 0.51 0.51 21 0.49 0.49 0.49
26 0.49 0.45 0.47 23 0.46 0.46 0.46 22 0.51 0.51 0.51 22 0.48 0.48 0.48
27 0.45 0.46 0.46 24 0.46 0.46 0.46 23 0.52 0.50 0.51 25 0.53 0.53 0.53
28 0.46 0.46 0.46 25 0.51 0.51 0.51 24 null null null 26 0.53 0.53 0.53
29 0.46 0.46 0.46 26 0.51 0.51 0.51 25 0.51 0.51 0.51 27 0.53 0.53 0.53
29 0.51 0.51 0.51 28 0.51 0.51 0.51 28 0.53 0.53 0.53
29 0.50 0.50 0.50 29 0.53 0.53 0.53
30 0.50 0.50 0.50
31 0.50 0.50 0.50
37
May 2016,3 0.53 0.52 0.53 Jun 2016, 1 0.45 0.45 0.45 Jul 2016, 1 null null null Aug 2016,1 0.47 0.47 0.47
4 0.52 0.52 0.52 2 0.45 0.45 0.45 4 null null null 2 0.47 0.47 0.47
5 0.55 0.55 0.55 3 0.45 0.45 0.45 5 null null null 3 0.47 0.47 0.47
6 0.48 0.48 0.48 6 0.45 0.45 0.45 6 null null null 4 0.46 0.46 0.46
9 0.48 0.48 0.48 7 0.45 0.45 0.45 7 null null null 5 0.46 0.46 0.46
10 0.48 0.48 0.48 8 0.45 0.45 0.45 8 null null null 8 0.46 0.46 0.46
11 0.48 0.48 0.48 9 0.45 0.45 0.45 11 0.46 0.46 0.46 9 0.46 0.46 0.46
12 0.48 0.48 0.48 10 0.45 0.45 0.45 12 0.46 0.46 0.46 10 0.46 0.46 0.46
13 0.48 0.48 0.48 13 0.45 0.45 0.45 13 0.46 0.46 0.46 11 0.46 0.46 0.46
16 null null null 14 0.46 0.46 0.46 14 0.46 0.46 0.46 12 0.46 0.46 0.46
17 null null null 15 0.46 0.46 0.46 15 0.46 0.46 0.46 15 0.46 0.46 0.46
18 0.48 0.48 0.48 16 0.46 0.46 0.46 18 0.47 0.47 0.47 16 0.46 0.46 0.46
19 null null null 17 0.46 0.46 0.46 19 0.47 0.47 0.47 17 0.47 0.47 0.47
20 null null null 20 0.46 0.46 0.46 20 0.47 0.47 0.47 18 0.47 0.48 0.48
23 0.48 0.48 0.48 21 0.46 0.46 0.46 21 0.47 0.47 0.47 19 0.48 0.48 0.48
24 0.48 0.48 0.48 23 0.46 0.46 0.46 22 0.47 0.47 0.47 22 0.48 0.48 0.48
25 0.48 0.48 0.48 24 0.46 0.46 0.46 25 0.47 0.47 0.47 23 0.50 0.50 0.50
26 0.45 0.45 0.45 27 0.46 0.46 0.46 26 0.47 0.47 0.47 24 0.50 0.50 0.50
27 0.46 0.44 0.45 28 null null null 27 0.47 0.47 0.47 25 0.50 0.50 0.50
30 0.44 0.44 0.44 29 null null null 28 0.46 0.47 0.46 26 0.50 0.50 0.50
31 0.45 0.45 0.45 30 null null null 29 0.47 0.47 0.47 29 0.50 0.50 0.50
30 0.50 0.50 0.50
38
Sep 2016, 1 0.50 0.50 0.50 Oct 2016, 4 0.50 0.50 0.50 Nov 2016, 1 0.46 0.46 0.46 Dec 2016, 1 0.41 0.41 0.41
2 0.50 0.50 0.50 5 0.48 0.48 0.48 2 0.46 0.46 0.46 2 0.41 0.41 0.41
5 0.50 0.50 0.50 6 0.46 0.46 0.46 3 0.46 0.46 0.46 5 0.40 0.40 0.40
6 0.49 0.49 0.49 7 0.46 0.46 0.46 4 0.46 0.46 0.46 6 0.41 0.42 0.41
7 0.49 0.49 0.49 10 0.46 0.46 0.46 7 0.46 0.46 0.46 7 0.42 0.42 0.42
8 0.47 0.47 0.47 11 0.47 0.46 0.46 8 0.46 0.46 0.46 8 0.42 0.42 0.42
9 0.50 0.48 0.49 12 0.46 0.46 0.46 9 0.45 0.45 0.45 9 0.42 0.42 0.42
13 0.48 0.48 0.48 13 0.46 0.46 0.46 10 0.45 0.45 0.45 13 0.42 0.42 0.42
14 0.48 0.48 0.48 14 0.46 0.46 0.46 11 0.45 0.45 0.45 14 0.42 0.42 0.42
15 0.48 0.48 0.48 17 0.46 0.46 0.46 14 0.45 0.45 0.45 15 0.42 0.41 0.41
19 0.48 0.48 0.48 18 0.46 0.48 0.47 15 0.45 0.45 0.45 16 0.41 0.41 0.41
20 0.48 0.48 0.48 19 0.48 0.48 0.48 16 0.45 0.45 0.45 19 0.41 0.41 0.41
21 0.45 0.45 0.45 20 0.48 0.48 0.48 17 0.45 0.45 0.45 20 0.41 0.41 0.41
22 0.47 0.47 0.47 21 0.48 0.48 0.48 18 0.44 0.42 0.43 21 0.41 0.41 0.41
23 0.47 0.47 0.47 24 0.48 0.48 0.48 21 0.42 0.42 0.42 22 0.40 0.40 0.40
26 0.45 0.50 0.48 25 0.48 0.48 0.48 22 0.41 0.40 0.41 23 0.40 0.40 0.40
27 0.50 0.50 0.50 26 0.48 0.47 0.48 23 0.42 0.44 0.43 27 0.40 0.40 0.40
28 0.50 0.50 0.50 27 0.47 0.47 0.47 24 0.43 0.43 0.43 28 0.40 0.40 0.40
29 0.50 0.50 0.50 28 0.48 0.48 0.48 25 0.42 0.42 0.42 29 0.40 0.40 0.40
30 0.50 0.50 0.50 31 0.48 0.48 0.48 28 0.42 0.42 0.42 30 0.40 0.40 0.40
29 0.41 0.41 0.41
30 0.42 0.41 0.41
39
(E) Foreign Exchange Rate (USD)
Date Highest Lowest Volatility Date Highest Lowest Volatility Date Highest Lowest Volatility Date Highest Lowest Volatility
Jan 2016, 4 4.3480 4.3000 0.0480 Feb 2016,2 4.2150 4.1600 0.0550 Mar 2016,1 4.1950 4.1620 0.0330 Apr 2016,1 3.9100 3.8830 0.0270
5 4.3580 4.3305 0.0275 3 4.2450 4.2220 0.0230 2 4.1670 4.1500 0.0170 4 3.9030 3.8650 0.0380
6 4.3950 4.3400 0.0550 4 4.1650 4.1430 0.0220 3 4.1500 4.1280 0.0220 5 3.9340 3.9100 0.0240
7 4.4300 4.3830 0.0470 5 4.1680 4.1170 0.0510 4 4.1470 4.1120 0.0350 6 3.9300 3.9050 0.0250
8 4.3860 4.3470 0.0390 10 4.1800 4.1200 0.0600 7 4.0970 4.0780 0.0190 7 3.9170 3.8500 0.0670
11 4.4200 4.3800 0.0400 11 4.1500 4.1005 0.0495 8 4.1210 4.0810 0.0400 8 3.9500 3.9000 0.0500
12 4.4180 4.3750 0.0430 12 4.1900 4.1400 0.0500 9 4.1425 4.1220 0.0205 11 3.8990 3.8750 0.0240
13 4.4100 4.3780 0.0320 15 4.1670 4.1155 0.0515 10 4.1280 4.0950 0.0330 12 3.8930 3.8740 0.0190
14 4.4050 4.3820 0.0230 16 4.1560 4.1150 0.0410 11 4.1250 4.0850 0.0400 13 3.8780 3.8470 0.0310
15 4.3980 4.3750 0.0230 17 4.2230 4.1900 0.0330 14 4.1080 4.0880 0.0200 14 3.9140 3.8850 0.0290
18 4.4230 4.3930 0.0300 18 4.1810 4.1500 0.0310 15 4.1400 4.1140 0.0260 15 3.9100 3.8920 0.0180
19 4.4050 4.3640 0.0410 19 4.2330 4.1850 0.0480 16 4.1460 4.1320 0.0140 18 3.9600 3.9270 0.0330
20 4.3960 4.3700 0.0260 22 4.2180 4.1950 0.0230 17 4.0950 4.0600 0.0350 19 3.9100 3.8800 0.0300
21 4.3880 4.3670 0.0210 23 4.2130 4.1730 0.0400 18 4.0650 4.0350 0.0300 20 3.8810 3.8550 0.0260
22 4.3580 4.2900 0.0680 24 4.2470 4.2150 0.0320 21 4.0790 4.0530 0.0260 21 3.8990 3.8700 0.0290
26 4.3070 4.2800 0.0270 25 4.2240 4.2025 0.0215 22 4.0670 3.9930 0.0740 22 3.9080 3.8970 0.0110
27 4.2750 4.2350 0.0400 26 4.2320 4.1900 0.0420 23 4.0130 3.9640 0.0490 25 3.9150 3.9050 0.0100
28 4.2650 4.2020 0.0630 29 4.2350 4.2030 0.0320 24 4.0430 4.0130 0.0300 26 3.9510 3.9050 0.0460
29 4.1780 4.1180 0.0600 25 4.0520 4.0210 0.0310 27 3.9380 3.9090 0.0290
28 4.0420 4.0080 0.0340 28 3.9180 3.8920 0.0260
29 4.0060 3.9955 0.0105 29 3.9150 3.8800 0.0350
30 3.9730 3.9330 0.0400
31 3.9340 3.8940 0.0400
40
May 2016,3 3.9330 3.9040 0.0290 Jun 2016, 1 4.1530 4.1150 0.0380 Jul 2016, 1 4.0050 3.9850 0.0200 Aug 2016,1 4.0430 4.0170 0.0260
4 3.9930 3.9725 0.0205 2 4.1750 4.1440 0.0310 4 3.9980 3.9850 0.0130 2 4.0580 4.0370 0.0210
5 4.0120 3.9930 0.0190 3 4.1540 4.1380 0.0160 5 4.0250 4.0005 0.0245 3 4.0700 4.0500 0.0200
6 4.0150 4.0020 0.0130 6 4.1080 4.0870 0.0210 8 4.0470 4.0330 0.0140 4 4.0510 4.0400 0.0110
9 4.0160 3.9900 0.0260 7 4.0885 4.0580 0.0305 11 4.0100 3.9810 0.0290 5 4.0395 4.0210 0.0185
10 4.0620 4.0450 0.0170 8 4.0700 4.0570 0.0130 12 4.0100 3.9800 0.0300 8 4.0480 4.0340 0.0140
11 4.0570 4.0350 0.0220 9 4.0480 4.0270 0.0210 13 4.0050 3.9700 0.0350 9 4.0380 4.0260 0.0120
12 4.0300 4.0100 0.0200 10 4.0820 4.0570 0.0250 14 3.9750 3.9400 0.0350 10 4.0200 3.9880 0.0320
13 4.0310 4.0265 0.0045 13 4.1080 4.0810 0.0270 15 3.9620 3.9430 0.0190 11 4.0200 4.0030 0.0170
16 4.0430 4.0250 0.0180 14 4.1080 4.0810 0.0270 18 3.9870 3.9730 0.0140 12 4.0330 3.9950 0.0380
17 4.0230 4.0100 0.0130 15 4.1140 4.0950 0.0190 19 4.0080 3.9810 0.0270 15 4.0380 4.0070 0.0310
18 4.0510 4.0250 0.0260 16 4.1020 4.0830 0.0190 20 4.0420 4.0150 0.0270 16 4.0300 3.9850 0.0450
19 4.0920 4.0650 0.0270 17 4.1100 4.0910 0.0190 21 4.0505 4.0270 0.0235 17 4.0075 3.9940 0.0135
20 4.0850 4.0700 0.0150 20 4.0780 4.0630 0.0150 22 4.0730 4.0450 0.0280 18 4.0000 3.9880 0.0120
23 4.0870 4.0660 0.0210 21 4.0680 4.0320 0.0360 25 4.0860 4.0630 0.0230 19 4.0200 3.9930 0.0270
24 4.1255 4.0850 0.0405 23 4.0285 4.0110 0.0175 26 4.0880 4.0580 0.0300 22 4.0390 4.0230 0.0160
25 4.1210 4.0980 0.0230 24 4.1150 4.0125 0.1025 27 4.0880 4.0580 0.0300 23 4.0320 4.0210 0.0110
26 4.0910 4.0780 0.0130 27 4.1360 4.0850 0.0510 28 4.0670 4.0450 0.0220 24 4.0450 4.0350 0.0100
27 4.0860 4.0700 0.0160 28 4.1150 4.0670 0.0480 29 4.0810 4.0470 0.0340 25 4.0450 4.0170 0.0280
30 4.1180 4.0920 0.0260 29 4.0680 4.0400 0.0280 26 4.0220 4.0130 0.0090
31 4.1350 4.1060 0.0290 30 4.0400 4.0120 0.0280 29 4.0470 4.0365 0.0105
30 4.0580 4.0345 0.0235
41
Sep 2016, 1 4.0820 4.0700 0.0120 Oct 2016, 4 4.1300 4.1200 0.0100 Nov 2016,1 4.1970 4.1825 0.0145 Dec 2016, 1 4.4690 4.4650 0.0040
2 4.0920 4.0780 0.0140 5 4.1420 4.1350 0.0070 2 4.2020 4.1870 0.0150 2 4.4570 4.4440 0.0130
5 4.0800 4.0670 0.0130 6 4.1440 4.1320 0.0120 3 4.1890 4.1810 0.0080 5 4.4500 4.4470 0.0030
6 4.0830 4.0670 0.0160 7 4.1580 4.1470 0.0110 4 4.2010 4.1925 0.0085 6 4.4450 4.4360 0.0090
7 4.0670 4.0550 0.0120 10 4.1520 4.1430 0.0090 7 4.2140 4.2050 0.0090 7 4.4380 4.4330 0.0050
8 4.0640 4.0380 0.0260 11 4.1760 4.1440 0.0320 8 4.2130 4.2000 0.0130 8 4.4300 4.4210 0.0090
9 4.0740 4.0610 0.0130 12 4.2010 4.1840 0.0170 9 4.2360 4.1830 0.0530 9 4.4270 4.4220 0.0050
13 4.1200 4.0900 0.0300 13 4.2230 4.1930 0.0300 10 4.2750 4.2440 0.0310 13 4.4380 4.4210 0.0170
14 4.1375 4.1200 0.0175 14 4.2200 4.1950 0.0250 11 4.3500 4.2900 0.0600 14 4.4480 4.4250 0.0230
15 4.1520 4.1250 0.0270 17 4.2210 4.2130 0.0080 14 4.3350 4.2950 0.0400 15 4.4670 4.4470 0.0200
19 4.1430 4.1280 0.0150 18 4.2130 4.1910 0.0220 15 4.3500 4.3300 0.0200 16 4.4775 4.4675 0.0100
20 4.1460 4.1340 0.0120 19 4.1950 4.1850 0.0100 16 4.3600 4.3380 0.0220 19 4.4800 4.4740 0.0060
21 4.1600 4.1330 0.0270 20 4.1900 4.1720 0.0180 17 4.3970 4.3600 0.0370 20 4.4800 4.4750 0.0050
22 4.1150 4.0980 0.0170 21 4.2000 4.1830 0.0170 18 4.4190 4.3950 0.0240 21 4.4800 4.4770 0.0030
23 4.1230 4.1130 0.0100 24 4.1900 4.1700 0.0200 21 4.4340 4.4170 0.0170 22 4.4800 4.4745 0.0055
26 4.1395 4.1200 0.0195 25 4.1800 4.1550 0.0250 22 4.4450 4.4100 0.0350 23 4.4800 4.4750 0.0050
27 4.1420 4.1155 0.0265 26 4.1650 4.1420 0.0230 23 4.4450 4.4200 0.0250 27 4.4800 4.4750 0.0050
28 4.1440 4.1290 0.0150 27 4.1885 4.1730 0.0155 24 4.4660 4.4450 0.0210 28 4.4820 4.4790 0.0030
29 4.1250 4.1100 0.0150 28 4.2040 4.1950 0.0090 25 4.4695 4.4570 0.0125 29 4.4850 4.4830 0.0020
30 4.1500 4.1340 0.0160 31 4.2120 4.1910 0.0210 28 4.4650 4.4550 0.0100 30 4.4865 4.4850 0.0015
29 4.4670 4.4630 0.0040
30 4.4670 4.4650 0.0020
42
Chapter 6 Data Analysis
Company 1 F&N Regression
Descriptive Statistics
Mean Std. Deviation N
StockPrice 22.7818 2.36927 243

USD .024792 .0145361 243
Correlations
StockPrice USD
StockPrice 1.000 -.401

Pearson Correlation
USD -.401 1.000
StockPrice . .000
Sig. (1-tailed)
USD .000 .
StockPrice 243 243
N
USD 243 243
Model Summaryb
Model R R Square Adjusted R Std. Error of the

Square Estimate
1 .401a .161 .158 2.17464
a. Predictors: (Constant), USD

b. Dependent Variable: StockPrice
ANOVAa
Model Sum of Squares df Mean Square F Sig.
Regression 218.756 1 218.756 46.258 .000b
1 Residual 1139.699 241 4.729
Total 1358.455 242
a. Dependent Variable: StockPrice

b. Predictors: (Constant), USD
Coefficientsa
Model Unstandardized Coefficients Standardized t Sig.

Coefficients
B Std. Error Beta
(Constant) 24.403 .276 88.343 .000

1
USD -65.407 9.617 -.401 -6.801 .000
43
Residuals Statisticsa
Minimum Maximum Mean Std. Deviation N
Predicted Value 17.6992 24.3053 22.7818 .95076 243

Residual -4.69985 7.40082 .00000 2.17014 243
Std. Predicted Value -5.346 1.602 .000 1.000 243
Std. Residual -2.161 3.403 .000 .998 243
44
Company 2 Nestle Regression
StockPrice 76.7374 2.09517 243

USD .024792 .0145361 243
Correlations
StockPrice USD
StockPrice 1.000 -.391

Pearson Correlation
USD -.391 1.000
StockPrice . .000
Sig. (1-tailed)
USD .000 .
StockPrice 243 243
N
USD 243 243
Model Summaryb

Square Estimate
1 .391a .153 .150 1.93219

ANOVAa
Regression 162.572 1 162.572 43.546 .000b
1 Residual 899.742 241 3.733
Total 1062.314 242

Coefficientsa

Coefficients
B Std. Error Beta
(Constant) 78.135 .245 318.350 .000

1
USD -56.385 8.545 -.391 -6.599 .000
45
Predicted Value 72.3559 78.0508 76.7374 .81962 243

Residual -3.53127 4.21413 .00000 1.92820 243
Std. Residual -1.828 2.181 .000 .998 243
46
Company 3 Poh Kong Regression
StockPrice .5004 .02541 243

USD .024792 .0145361 243
Correlations
StockPrice USD
StockPrice 1.000 .423

Pearson Correlation
USD .423 1.000
StockPrice . .000
Sig. (1-tailed)
USD .000 .
StockPrice 243 243
N
USD 243 243
Model Summaryb

Square Estimate
1 .423a .179 .176 .02307

ANOVAa
Regression .028 1 .028 52.670 .000b
1 Residual .128 241 .001
Total .156 242

Coefficientsa

Coefficients
B Std. Error Beta
(Constant) .482 .003 164.471 .000

1
USD .740 .102 .423 7.257 .000
47
Predicted Value .4831 .5579 .5004 .01076 243

Residual -.06540 .07532 .00000 .02302 243
Std. Residual -2.835 3.265 .000 .998 243
48
Company 4 Tomei Regression
StockPrice .4684 .03017 234

USD .025009 .0147291 234
Correlations
StockPrice USD
StockPrice 1.000 .316

Pearson Correlation
USD .316 1.000
StockPrice . .000
Sig. (1-tailed)
USD .000 .
StockPrice 234 234
N
USD 234 234
Model Summaryb

Square Estimate
1 .316a .100 .096 .02869

ANOVAa
Regression .021 1 .021 25.746 .000b
1 Residual .191 232 .001
Total .212 233

Coefficientsa

Coefficients
B Std. Error Beta
(Constant) .452 .004 122.188 .000

1
USD .647 .128 .316 5.074 .000
49
Predicted Value .4532 .5186 .4684 .00954 234

Residual -.06990 .08546 .00000 .02862 234
Std. Residual -2.437 2.979 .000 .998 234
50
Chapter 7 Result and Discussion
Simple Linear Regression is a statistical method that allows researcher to summarize
and study relationship between two quantitative variables. In this study,
 Variable x, is regarded as the predictor or independent variable;

 Variable y, is regarded as the response or dependent variable.
After collecting all average daily stock price of four selected company respectively and
USD daily volatility in the period of 1.1.2016 – 31.12.2016, a scatter plot of (x,y) data
graph can be shown with a most appropriate line passing through all the data.
Table 1 Descriptive Statistics*
N Mean Std. Deviation

USD Volatility 243 RM 0.2479 RM 0.01453
234 RM 0.0250 RM 0.01473
F&N 243 RM 22.7818 RM 2.3693
Nestle 243 RM 76.7374 RM 2.0952
Poh Kong 243 RM 0.5004 RM 0.0254
TOMEI 234 RM 0.4684 RM 0.0302
*SPSS output please refer to Chapter 6
Table above represented the detailed of USD volatility and stock price of four company
(F&N, Nestle, Poh Kong and Tomei) in the form of mean and standard deviation.
The total number of trading days will be counted for both stock price and USD volatility
of F&N, Nestle and Poh Kong are 243 days, while only Tomei is 234 days. Instead of
using the calendar dates, that is 365 days per year, we would prefer to use trading date.
Trading at Bursa Malaysia is from Monday to Friday, except on public holidays and
other market holidays (when the Exchange is declared closed by the Bursa Malaysia
Committee) therefore the total trading date for a year is less than 365 days. The non-
trading days of the Exchange are in line with the national public holidays of Malaysia.
However, while collecting data, there is some missing data. For foreign exchange
currency, there are four additional date which is missing that is 8th – 9th February 2016
and 6th -7th July 2016, a total of four missing data. For stock trading, there are three
missing data as well that is 24th March 2016, 28th -29th June 2016. Therefore a total 7
51
missing data will not be included while running SPSS. There is a special case for
TOMEI stock trading because another 10 missing data are found in between 16th, 17th,
19th, 20th May 2016, 30th June 2016, 1st, 4th, 5th, 8th July 2016 respectively. For this case,
a total of 16 days will be removed from both TOMEI stock price as well as USD
volatility foreign exchange to get a more fair and relevant result while running SPSS.
F&N and Nestle are fast moving consumer goods (FMCG) companies, while Poh Kong
and Tomei are jewelry companies.
The significant difference between this two types of companies is the mean and
standard deviation. For F&N and Nestle the mean stock price are RM22.78 and
RM76.74 respectively, while for Poh Kong and Tomei the mean stock price are RM0.50
and RM0.49 respectively. This show that there is a significant difference, mean stock
prices for F&N and Nestle are much higher than Poh Kong and Tomei. In addition, the
standard deviation for F&N and Nestle (RM2.37 and RM2.10) are also higher than that
of Poh Kong and Tomei (RM0.025 and RM0.030).
Table 2 Pearson Correlation Coefficient Test*
USD Volatility
Stock N
r-value p-value (sig.1 tailed)
F&N 243 -0.401 0.000
Nestle 243 -0.391 0.000
Poh Kong 243 0.423 0.000
TOMEI 234 0.316 0.000
From the above correlation table, we realized that the coefficient of correlation between
USD volatility with F&N stock price is -0.401 and with Nestle stock price is -0.391,
which implies that the higher the foreign exchange volatility of USD, the lower the
stock price will be. As vice versa, the coefficient of correlation between USD volatility
with Poh Kong stock price and TOMEI stock price are 0.423 and 0.316 respectively,
which implies that higher the foreign exchange volatility of USD, the higher the stock
price will be. By focusing on the absolute value, Poh Kong shows the highest
correlation with foreign exchange volatility of USD as compared to others.
52
Based on the correlation test carried out, the low p-value, 0.00 (p < 0.05), a strong
evidence to imply that there is a correlation between the stock prices of all four selected
company with the foreign exchange volatility of USD respectively.
With the correlation found, a general linear regression model is formed as follow:
predicted stock price of company = β0 + β1 (foreign exchange volatility of USD)
where 𝛽0 = the y-intercept of the linear regression model;
𝛽1 = the effect to the stock price when there is an increase on 1unit at the
foreign exchange volatility of USD
Regarding to the linear regression model made, 2 hypothesis is made as follow,
H0: all β = 0;
H1: all β ≠ 0.
We obtained the linear regression model using SPSS and the results are shown at the
Table as below:
Table 3 Linear Regression Test*
Model summary
Stock
R-square Adjusted R Square
F&N 0.161 16.1% 0.158 15.8%
Nestle 0.153 15.3% 0.150 15.0%
Poh Kong 0.179 17.9% 0.176 17.6%
TOMEI 0.100 10.0% 0.096 9.6%
Here are some basic characteristic to be know about the measure of coefficient of
determination, R-square value.
 R-square value is a proportion, it is always a number between 0 and 1.
 If R-square = 1 indicating that all of the data points fall perfectly on the regression
line. The predictor x accounts for all of the variation in y.
 If R-square = 0 indicating that the estimated regression line is perfectly horizontal.
The predictor x accounts for none of the variation in y.
To have a clearer interpretation, we would like to say that (R-square value x 100%) of
the variation in y is explained by the variation in predictor x.
53
Based on the model summary, we obtained the R-square value as 0.161 for the case of
F&N indicates that 16.1% of the variation in the predicted stock price of F&N is
explained by the variation in the volatility of the USD foreign exchange. While there is
15.3% of the variance of the stock price of Nestle, stock price of Poh Kong shows the
highest 17.9% of variance and stock price of TOMEI shows the lowest 10.0% of
variance respectively explained by the variation in the volatility of the USD foreign
exchange
However, it should be reminded that the R-square value will increase when the set of
data increased. Thus, for a more accuracy measurement, we would suggest the used of
adjusted R-square value which will not be affected by the number of data.
From the above, we obtained the adjusted R-squared value of F&N to be 0.158, which
give us the information that approximately 15.8% of the variance of the stock price of
F&N can be explained using our suggested model. There is 15.0% of the variance of
the stock price of Nestle, 17.6% of the variance of the stock price of Poh Kong and 9.6%
of the variance of the stock price of TOMEI can be explained using our suggested model
respectively.
Table 4 ANOVA Test *
Stock F-value p-value sig.1 tailed

F&N 46.258 0.000
Nestle 43.546 0.000
Poh Kong 52.670 0.000
TOMEI 25.746 0.000
From the ANOVA table above, the low significant F-test value, which is 0.00 implies
that the null hypothesis of all β equals zero should be rejected, hence, we may continue
with determining the coefficient of the β in our model.
54
Table 5 Coefficient determination *
Stock Unstandardized coefficients Standardized t sig.

β0 β1 coefficient
F&N 24.403 88.343 0.000
USD -65.407 -0.401 -6.801 0.000
Nestle 78.135 318.350 0.000
USD -56.385 -0.391 -6.599 0.000
Poh Kong 0.482 164.471 0.000
USD 0.740 0.423 7.257 0.000
TOMEI 0.452 122.188 0.000
USD 0.647 0.316 5.074 0.000
We may say that the value of the β are acceptable based on the sample t-test p-value.
Both the p-value of the sample t-test, 0.000 and 0.000 for testing the null hypothesis
assuming β0=0 and β1=0 respectively should be rejected.
From the results of SPSS, we then further the linear model for each respective stock
will be as follow:
Table 6 Linear Regression Model
Linear model
Stock
= β0 + β1 (foreign exchange volatility of USD)
F&N = 24.403 – 65.407 (foreign exchange volatility of USD)
Nestle = 78.135 – 56.385 (foreign exchange volatility of USD)
Poh Kong = 0.482 + 0.740 (foreign exchange volatility of USD)
TOMEI = 0.452 + 0.647 (foreign exchange volatility of USD)
Standardizing coefficient means researcher can compare the relative importance of each
coefficient in a regression model. Due to the different of the range of the stock price, it
is better for us to use the standardized linear regression model for comparison. This
may help us prevent the effect of different stock price range that will lead us to wrong
interpretation. The standardized linear regression model are shown in the table below
55
Table 7 Standardized model
Linear model
Stock
= (𝑠𝑡𝑎𝑛𝑑𝑎𝑟𝑑𝑖𝑧𝑒𝑑 𝑏𝑒𝑡𝑎) 𝑥 (foreign exchange volatility of USD)
F&N = -0.401 (foreign exchange volatility of USD)
Nestle = -0.391 (foreign exchange volatility of USD)
Poh Kong = 0.423 (foreign exchange volatility of USD)
TOMEI = 0.316 (foreign exchange volatility of USD)
Table 8 Residuals Statistics *
MEAN
F&N Nestle Poh Kong TOMEI
Residual 0.0000 0.0000 0.0000 0.0000
While running a linear regression, SPSS automatically calculates and plots residual to
help researcher to understand and improve the regression model.
In regression analysis, the difference between the observed value of the dependent
variable (y) and the predicted value is called the residual. Each data point has one
residual. Both the sum and the mean of the residuals are equal to zero. This statement
is clearly presented at the outcome of residual statistics run by SPSS.
The basic idea within any normal probability plot say that, if the data follow a normal
distribution with mean and variance, then a plot of the theoretical percentiles of the
normal distribution versus the observed sample percentiles should be approximately
linear. With the residuals data run by SPSS, a normal probability plot of the residuals
is created as well. If the resulting plot is approximately linear, further assuming that the
error terms are normally distributed.
The normal P-P plot of regression standardized residual is plotting the predicted value
versus the observed values. It is also known as the SML line.
56
Figure 6 Overall Histogram and Normal P-P plot of Regression Standardized Residual
F&N
Nestle
57
Poh Kong
TOMEI
Both Poh Kong and TOMEI histogram graphs of residuals suggest that the residuals
are normally distributed but there is one extreme outlier for both company respectively.
The normal probability plot of the residuals is then approximately linear supporting the
condition except with the one data point, the outlier. However, Poh Kong has a better
distribution while compared to TOMEI.
58
Chapter 8 Conclusion
Based on the four-suggested linear model, we may make a comparison on the absolute
value of the standardized coefficient of β in each linear model and say that the stock
price of Poh Kong will be affected the most when the volatility of the foreign exchange
of USD changed. This is due to the standardized coefficient of β of the suggested linear
model of Poh Kong recorded the highest absolute value, 0.423, among the others
suggested linear model. It implies that when the volatility of foreign exchange of USD
changed by 1 unit, the expected stock price will be affected by RM0.423. The reason
we make a comparison using the standardized coefficient of β instead of that of
unstandardized value is that we would like to remove the effect different price range of
four of the companies.
However, it should be noticed that from the low value of adjusted R-square value, the
volatility of the foreign exchange of USD is not the only criteria that affected the
variation of the stock price. We can only observe the effect of the foreign exchange
volatility of USD on the stock price from this linear model. Thus, if we would like to
study more on the variation of stock price, we would have to consider more other factors
such as the inflation rates of the country and other related measurement. It is also being
remaindered that the volatility we observed is based on the USD foreign exchange,
when other currency was used in the prediction, a new linear regression model should
be build and the relevant results may be differ from the current model.
59
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ACT 4221 INVESTMENT ANALYSIS

Semester 1, Session 2017/2018

Fraser & Neave Holding Bhd Global History

Fraser & Neave Holdings Bhd (F&N)

Company No: 004205-V

Stock Code: 3689

Stock Name: F&N (Main Market of Bursa Malaysia Securities Berhad)

Initial Public Offering: 28th August 1996

Figure 1 F&N Overall Financial Performance FY2016

 Growth: To be the leading beverage company in Southeast Asia, differentiated

 Diversity: To diversify revenue and earnings through geographic expansion

 Reach: To strengthen and build route-to-market in priority markets, and to be

 Brands: To be amongst the top three players in markets, focusing on the

 Professionalism: To be the employer of choice GROUP FINANCIAL

Nestlé Global History

Nestlé (Malaysia) Berhad

Company No.: 110925-W

Stock Code: 4707

Stock Name: NESTLE (Main Market of Bursa Malaysia Securities Berhad)

Initial Public Offering Date: 13th December 1989

Nestlé began in Malaysia in 1912 as the Anglo-Swiss Condensed Milk Company in

names and enjoyed for generations.

5. Reigniting the Growth: FIT Approach

Figure 2 Nestle Overall Financial Performance FY2016

Poh Kong Holdings Bhd

Company No.: 586139-K

Stock Code: 5080

Stock Name: POHKONG (Main Market of Bursa Malaysia Securities Berhad)

Initial Public Offering Date: 8th April 2005

Poh Kong Holdings Berhad is a Malaysia-based company engaged in investment

Figure 3 Poh Kong Overall Financial Performance FY2016

3. Largest Jewellery Retail Chain Store

In FYE2017, it plans to open another 3 to 5 stores with an estimated total capital

4. Retail Sales the Key Earning Driver

The number of outlets by state or territory as at FYE2016 was as follows: Selangor/

5. In-House and International Brands

Poh Kong is a one-stop, preferred family jeweller with a comprehensive range

6. Retail Concept Stores

Marketing campaigns, leveraging on-line platforms, social media and on-ground

Tomei Consolidated Berhad

Company No.: 692959-W

Stock Code: 7230

Stock Name: TOMEI (Main Market of Bursa Malaysia Securities Berhad)

Initial Public Offering Date: 12th July 2006

Tomei Consolidated Berhad (692959-W) was founded in 1968 as a jewellery designer

Tomei is a Malaysia-based investment holding company. It is an integrated

In 2013, Tomei became an exclusive distributor of De Beers, reinforcing its stature as

Figure 4 Tomei 5 years Financial Highlight FY2012-2016

3. Revenue & Profitability

b. Manufacturing & Wholesales division

Its manufacturing & wholesales division reported revenue of RM116.692 million

Impact of Foreign Exchange on Consumer Product Sector

Besides beverage maker, the snack food and confectionery manufacturers is

Impact of Foreign Exchange on Jewellery Industry

Additionally, a study by Kandir (2008) on Turkey to determine the relationship between

However, Brooks, et al, (2010) undertook an analysis on foreign exchange rate

In Malaysia, Ibrahim (2000) examined both bivariate and multivariate cointegration

A Pearson product-moment correlation coefficient test was used to assess the

Company 1 F&N Regression

Mean Std. Deviation N

StockPrice 22.7818 2.36927 243

StockPrice 1.000 -.401

Model R R Square Adjusted R Std. Error of the