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: 26 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).

We purchase three time on GENETIC stock due to some ups and down reason, the first
purchase is 100 stock at 5th of July with RM1,492.16 and sold it in the second day and gain a
profit of RM 17.49, this is because we saw an increase in the stock then we sold it. The second
time we purchase the stock is at 7th of July, with 300 stock at RM4,906.85 and sold it at the
same day and gain RM 49.73. We sold the stock during that particular day is because we saw
a tremendous increase of the stock and tend to sell it. The third time we purchase the stock with
2,000 stock at RM36,815.91 and sold it separate with the balance amount of stock for two
different day. On 8th of July, we sold 1,000 amount of stock that has a loses of RM106.41, the
second batch of 1,000 stock was sold at 13th of July and gain RM 351.06. The stocks were sold
different time with balance amount is because on 8th July during observation we saw that the
stock price was dropping a lot then we sold it and waited that the other half would gain profit,
also we think that if it was losing money, we won’t be losing much.
 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.

We purchase HIGHTEC stock for four times due to profit gaining and lose at the last.
The first purchase was in 8th of July with 6,200 stock at RM28,644.44 and sold it during that
day and gain RM301.32, this is because we see an increase of the stock. The second purchase
was in 9th of July with 12,000 of stock at RM65,015.23 and sold it during that day and gain
RM 422.47, the reason to it is increase on the stock. The third and fourth purchase was in 12th
and 22nd of July, the amount was 2,000 and 1,000 of stock at RM13,131.83 and RM5,007.39.
Both of the stock was sold for two time at 26th of July in the morning and afternoon near to the
close of stock market both with a total loss of RM4086.93
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.

HARTA stock was purchase for three time in these three weeks. First and second
purchase was in 14th and 15th of July with 1,000 and 1,400 for RM7,239.60 and RM10,248.06.
The two batch of stock was sold in 15th of July and gain RM375.63 the stock was brought
during that day is because we saw an opportunity on increase for the stock and sold it. The last
purchase was in 19th with 4,000 at RM30,285.66 and the stock was sold in 21st of July with a
loss of RM52.86. This is because the stock price was dropping, and we fear that the price might
not increase till the price we expected to sell.

Figure 3: Historical Data of Harta

Answer 3

Lai Zi Foong

The learning experience of this first close encounter with the stock market is a new
thing to me. Before I experience the stock market, I 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 I experience the stock market, I was very excited by observing the
share price going up and keep watching the stock market to know the latest update. Besides
that, I 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, I will be able to make a profit instead of simply buy a counter and cause
loss of money. Lastly, I 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, I will well prepared before entering to the stock market.

Lee Jun Leong

I 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 I decide to invest into certain
stock, I will be done some research to understand what the current situation for that company
is, to know that whether the company is going good or bad 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, I will be decided to invest into the stock. On the other hand,
although sometimes I have done research before deciding to reduce the chance of losing money,
but there still have a risk that the stock price might suddenly drastically drop due to unexpected
issue. Moreover, I always stay optimistic toward the stock market. So that, I will not get
nervous or can’t sleep well. When the first time we gain money on the stock, for sure I feel
very excited and happy at the moment. But after around two weeks, we experience lose money
for the first time in the stock market. I know that I must experience this situation once I invest
into a stock market, although I feel upset when losing money, but I always have a well
expectation from the stock market and I think the stock price will back.
Hee Yong Jie

I 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 I
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 I Ire 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 me to try out in the stock market, I really excited about it on the ups and downs
of the stock that the company I purchase.

In addition, without a proper investigation and research upon that company I tend to
purchase may result in losing an amount of money. If I am just blindly follow-on which
company may that brought tremendous rise in that month or day, 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 I 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 me, I’m the risk taker, those three stocks are 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 I purchase. It is lucky
to said that I didn’t face any tremendous decease on the stock I 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.

Gee Siew Leong

I 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. Besides that, I will prefer to short term invest, not willing to hold
the stock for longer time because I will scare the share price will drop immediately.

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