Abstract
Recent statistical studies of the Singapore Stock Exchange generally conclude that the market is “weak-form efficient”. This means that technical analysis or the study of past share prices cannot reliably forecast future prices and lead investors to returns which exceed the market. This article reports on a study of 292 technical analysis-based investment recommendations made over a five year period, November 1979 to April 1984, by a Singapore investment advisory firm. The objective was to test whether this firm was able to use technical analysis to select common share investments which would allow investors to earn an excess return. After adjusting for trading commissions, market trends, and risk, the recommended shares did not outperform the market. Thus, the results correspond with what would be expected in a weakly efficient market.
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Dawson, S.M. Singapore share recommendations using technical analysis. Asia Pacific J Manage 2, 180–188 (1985). https://doi.org/10.1007/BF01734395
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DOI: https://doi.org/10.1007/BF01734395