Faculty of Business and Information Technology

Department of Business Studies

Bachelor of Arts (Hons) in Business Administration
May Semester, 2021

BBBFN3234 FINANCIAL MANAGEMENT II

Group Assignment

Lecturer: Mr. Frankie Goh

Submitted Date: August 2021

Student Name Student ID

Hee Yong Jie 1930303-BBA

Lai Zi Foong 1930318-BBA

Lee Jun Leong 1930324-BBA

Gee Siew Leong 1930304-BBA

Marks:
Remarks:
Stock Market Simulation (30 marks)

As a financial controller, the knowledge in stock market is vital to determine your success or
failure as an astute investor. Along this course, you were shown a virtual share trading
platform, https://apexegame.apexetrade.com/, where RM100,000 virtual money was given to
trade. The platform offered near-live trading experience and share prices were few seconds
from online real time quotes.
You are required to choose and select THREE (3) counters among the thousands of
companies listed on Bursa Malaysia, observe the share price movement within three weeks
(2/07/21 to 25/07/21) and write a report with the following observations:
1) Reasons of choosing the three counters/companies; (5 marks)
2) Price trend within the three weeks of observation (if prices were volatile, try to
pinpoint the reason). You could use the virtual money to buy/sell and indicate your
profit/loss at the end of the observed period; (5
marks)
3) Illustrate your learning experience of this first close encounter with the stock market.
(10 marks)
4) Presentation (10 marks)

Answer 1
 Table 1: Portfolio Report

According to Table 1, we are invested in many different types of stock companies.

Among those stocks, the three companies of stock that have been selected are GENETEC
(Genetec Technology Bhd), HIGHTEC (Kumpulan H & L High-Tech Bhd), and HARTA
(Hartalega Holdings Bhd). Firstly, the GENETEC and HIGHTEC are in the same category
which both are pertain to technology stocks. Based on our observation, the trading of
technology stocks was very fast, and its amplitude movement was also quite fast. We also use
the tools which are sort by gainers to search for the potential stocks. During the first week we
waited a few days to observe on the trading market, we choose few potential companies that
shown in table one, those company had a rise in stock at the profit gain section that was
chosen, and we observe it.

After a few days, in the observe list we found out that the price of GENETEC and
HIGHTEC was a rise continually. GENETEC and HGIHTEC was also in the profit gaining
section during the observation period, GENETEC was a company mention by our lecturer
that has longer experience in the stock market, he mentions that this company has a high
potential that will rise in the price of stock during his observation, it turns out that the stock
really was rising, thus we purchase the stock of GENETEC. HIGHTEC was another potential
in rising of stock price company that was listed in the top list of profit growing in the stock
market, we place it in the observation list and had a research of this company.

During the research, we found out that HIGHTEC is a diverse company that has
various of products, such as medical, automotive, electrical and others. Therefore, after the
research and observe of the flow in the stock market we purchase the stock of HIGHTEC.
Lastly, HARTA is a company of glove-manufacturer, the reason that we choose this company
during our observation is we tend to find out a profit gaining during this pandemic season, we
selected HARTA among many other glove companies is because of the most increase in
terms of pricing that has given by this company. Although, during the COVID-19 period
many glove companies such as TOPGLOV, SUPERMX, COMFORT and few other had
tremendous increase due to high demand of gloves in the gloves market, HARTA stands out
the most by having the highest increase in the stock price between those company. Thus, we
choose HARTA as out stock to purchase during the three weeks period and observe it.
Therefore, these three counters are our option to purchase during this three-week period and
observe to have a high potential of price gaining and increase the profit gain.

Answer 2

GENETEC

Based on our observation the price trend of GENETEC was pertain as arising trend.
According to Shankar (2021) stated that the price of GENETEC reached RM18 ringgit, a new
record high. This is because the company was exposed to the global electric vehicle (EV)
market and cause the stock price to increase rapidly. Due to the recent surge in share price
and trading volume, its share price was record intraday high of RM19 ringgit. Hence, Bursa
Malaysia was issued an Unusual Market Transaction (UMA) inquiry to the Genetec
Technology Bhd. Bursa Securities requires the group to disclose whether there are
unannounced corporate developments, or any rumours, reports or other factors that cause the
unusual movement in its share price (Tan & Chong, 2021). However, GENETEC was denied
that it has released any rumours, reports and the company does not know any specific reasons
for the unusual trading of shares (Lim, 2021).
 Figure 1: Historical Data of Genetec

HIGHTEC

According to The Edge Markets highlighted that HIGHTEC is the negative

momentum stocks. This is because, its share price was higher than price movements and
normal volume (Izzul, 2021). Moreover, Kumpulan H & L High-Tech Bhd also received the
unusual market activity (UMA) query by Bursa Malaysia for explanation. But, the company
not responded yet while in two weeks ago, its management has disposed some treasury stocks
to lets the stock price increase (Tan, 2021a). Hence, the reason for the rise in HIGHTEC
stock price may be affected by the sale of treasury stocks by its company.
 Figure 2: Historical Data of Hightec

HARTA

Among those three weeks, HARTA's stock price fluctuated little and remained within
RM7 ringgit. This is because, it was affected by the restrictions of Enhanced Movement
Control Order (EMCO) which must temporarily shut down the factory in Klang (Lim,
2021a). Besides that, the possibility of the government lowering its economic growth forecast
for 2021 and political uncertainty have weakened investor sentiment (Lim, 2021b). Plus, the
number of COVID-19 cases is high, including the rapidly spreading of delta variant (Tan,
2021b). Therefore, those are the factor cause the stock price of HARTA was fluctuated little.
 Figure 3: Historical Data of Harta

Answer 3

The learning experience of this first close encounter with the stock market is a new
thing to us. Before we experience the stock market, we usually understand the stock market
through TV dramas, such as businessmen or riches who use skills to trade in the stock market
to make a profit. During we experience the stock market, we are very excited by observing
the share price going up and keep watching the stock market to know the latest update.
Besides that, we will also do some research on targeted stocks in order to have a better
understanding of it. For example, company overview, the main products, financial highlights,
and other related information. So that, we will be able to make a profit instead of simply buy
a counter and cause loss of money.
 Besides, we often hear that investing in the stock market is a very risky way to make
money. Investing in the stock market can make us make a lot of money in a day, and it can
also make us lose all of our money in a day. Therefore, every time before we decide to invest
into certain stock, we will be done some research to understand what the current situation for
that company is, to know that whether the company is benefiting or non-benefiting to avoid
investing in a stock that the price always decline. Furthermore, if the company is going well
and the price stock for the company is also increasing, we will be decided to invest into the
stock. On the other hand, although sometimes we have done research before deciding to
reduce the chance of money loses, but there still have a risk that the stock price might
suddenly drastically drop due to unexpected issue.

On the other hand, we have heard rumours spreading among by families, friends,
relative and others that stock market is not a magnificent platform to increase the profit
because of its uncertainties, but there are also individuals who gain profit in the stock market.
Some may think that it isn’t a right place, and some may think that it is a better place to
increase their profit. Before that we thought that the price of stock is very cheap that and can
be purchase individually or setting the amount you wanted for 0.5sen per stock, but we were
wrong, the amount of stock has already been set to minimum of 1000stocks per purchase, that
needed around RM2000 to purchase the stock for a company. Although the cash used was
virtual money (fake money) that given by APEX Trade for us to try out in the stock market,
we were excited about it on the ups and downs of the stock that the company we purchase.

In addition, without a proper investigation and research upon that company we tend to
purchase may result in losing an amount of money. If we are just blindly follow-on which
company may that brought tremendous rise in that month, day, or week, it may result in a
failure or lucky enough that will rise. Without a proper research and observation, it will be
like a gambling that rely on pure luck, thus after purchasing a company we tend to follow-up
its news and study on the economies in the news, social media, stock market and other
sources to predict what will happens next. Stock market is a dangerous platform for
individuals to just purely depended on luck and lazy doing research on it, it requires times to
understand that many aspects will tend to fluctuate the stock market during a certain time,
some minor aspect may result in an increase or decrease for a market and towards that
company.
 For us, three weeks is a short period to study on the stock market, but just relying on
prediction and study on the daily news and report to know what is really going on in that
market and knowing that will happens on the stock we purchase. It is lucky to said that we
didn’t face any tremendous decease on the stock we purchase and haven’t lose a huge amount
of virtual money that was given. This opportunity has given us a better understanding on the
stock market and use the knowledge for lesson and try applying on it.

In the end, we seemed to gain a better understanding of investing concepts such as p/e
ratios and betas while also learning about teamwork, decision-making, and budgeting. I've
learned from playing this game that it's critical to pay attention to world events because what
happens in the real world affects how stock prices rise and fall. It was fascinating to see how
someone could make or lose a large sum of money in a matter of minutes. It was also
interesting to see how competitive people became.

这 段放 在最 后 Last but not least, we have learned an important lesson which is the stock
market can bring wealth meantime it will also bring loss. Ignorance of the stock market will
lead to loss of money and be in debt. Therefore, we must well prepared before entering to the
stock market.

Reference

Shankar, A. C. (2021, July 8). Genetec falls after rising past RM18 to new record high.
Retrieved August 19, 2021, from The Edge Markets website:
https://www.theedgemarkets.com/article/genetec-share-price-rises-past-rm18-new-
record-high

Tan, S. M., & Chong, J. H. (2021, July 14). Genetec falls as much as 5.27% after rising past
RM19 to record high. Retrieved August 19, 2021, from The Edge Markets website:
https://www.theedgemarkets.com/article/genetec-falls-after-rising-past-rm19-record-
high

Lim, J. (2021, July 14). Why Bursa only issued a UMA query to Genetec yesterday — when
its share price had been surging since last month. Retrieved August 19, 2021, from
The Edge Markets website: https://www.theedgemarkets.com/article/why-bursa-only-
issued-uma-query-genetec-yesterday-%E2%80%94-when-its-share-price-has-been-
surging

Izzul, I. (2021, July 9). Tex Cycle, Widetech, Tri-Mode, MPI, Stella, Hightec, Poly Glass.
Retrieved August 19, 2021, from The Edge Markets website:
https://www.theedgemarkets.com/article/tex-cycle-widetech-trimode-mpi-stella-
hightec-poly-glass
Tan, S. M. (2021a, July 12). Kumpulan H&L High-Tech sells shares as price rockets to
record high. Retrieved August 19, 2021, from The Edge Markets website:
https://www.theedgemarkets.com/article/hightec-share-price-extends-gain-after-
rising-record-high

Lim, J. (2021a, July 7). Glove makers in Selangor shut down temporarily due to EMCO.
Retrieved from The Edge Markets website:
https://www.theedgemarkets.com/article/glove-makers-klang-shut-down-temporarily-
due-emco

Lim, J. (2021b, July 12). KLCI bucks regional trend to close lower on political uncertainty
and economy woes. Retrieved from The Edge Markets website:
https://www.theedgemarkets.com/article/klci-bucks-regional-trend-close-lower-
political-uncertainty-and-economy-woes

Tan, S. M. (2021b, July 21). KLCI ends lower on concerns over continued high Covid-19
cases. Retrieved August 19, 2021, from The Edge Markets website:
https://www.theedgemarkets.com/article/klci-closes-345-points-lower-151652