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


Citation

Bahaludin, Hafizah and Abdullah, Mimi Hafizah and Hussin, Masnida and Laham, Mohamed Faris and Ismail, Zurita (2024) Analysing Malaysian technology sector during COVID-19: a minimum spanning tree approach. Journal of Advanced Research in Applied Sciences and Engineering Technology, 44 (2). pp. 210-220. ISSN 2462-1943

Abstract

This paper examines the structural changes of the companies listed in the technology sector in Bursa Malaysia during the COVID-19 pandemic. The closing price of each stock is used as the basis for calculating the cross-correlation between the companies' returns. Minimum spanning trees are employed to analyse the relationships and visualize the correlation changes for each period. Additionally, degree centrality is utilized to analyse the network's structure further. This study covers the period from 2020 to 2021 and involves 39 companies within the technology sector. The findings reveal significant fluctuations in the companies' correlations each year. Moreover, the most influential companies vary according to the period, demonstrating position changes. The fact that Inari Amertron (INAR), Revenue Group (REVE), and My EG Services (MYEG) consistently become leading players in different years shows how strong and influential they are in the technology sector. This suggests that these companies have the ability to shape market trends and possibly even control the direction of the industry. The results provide valuable insights for investors and policymakers, aiding in visualizing company relationships and facilitating strategic portfolio optimization.


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Additional Metadata

Item Type: Article
Divisions: Faculty of Computer Science and Information Technology
Institute for Mathematical Research
DOI Number: https://doi.org/10.37934/araset.44.2.210220
Publisher: Semarak Ilmu Publishing
Keywords: Bursa Malaysia; Financial network; Minimum spanning tree; Technology sector
Depositing User: Ms. Che Wa Zakaria
Date Deposited: 02 May 2025 02:53
Last Modified: 02 May 2025 02:53
Altmetrics: http://www.altmetric.com/details.php?domain=psasir.upm.edu.my&doi=10.37934/araset.44.2.210220
URI: http://psasir.upm.edu.my/id/eprint/116813
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