Fundamental, technical and news analysis on consumer stocks in SGX

Abstract

Fundamental, technical and news analysis are some of the frequently used methods by market analysts to evaluate stocks in the market to adequately identify investment opportunities. The objective of this project is to evaluate the effectiveness of integrating the three techniques into one analytical system in order to identify the best performing stocks in the Singapore Exchange (SGX) Consumer Sector. Comprehensive study into the fundamentals of each company is conducted, both quantitatively and qualitatively, to rank the stocks accordingly to their fundamental strengths. Thereafter, the TradingView program was used to investigate the technical indicators of the top ranking stocks while incorporating news analysis of major economic events which would account for anomalous price movements. Lastly, the project ends with a simulation of the stocks for the period of January 2019 to December 2020. The study shows that the analytical system of using fundamental analysis to investigate stock fundamentals, combined with technical and news analysis to study price trends and movement anomalies, was found to be feasible and effective. This was further supported with the optimal results obtained from the final simulation performed on the top ranking stocks.