Date of Publication

7-15-2023

Document Type

Bachelor's Thesis

Degree Name

Bachelor of Science in Management of Financial Institutions

Subject Categories

Finance | Finance and Financial Management

College

Ramon V. Del Rosario College of Business

Department/Unit

Financial Management Department

Thesis Advisor

Tyrone Panzer L. Chan Pao

Defense Panel Chair

Dioscoro P. Baylon, Jr.

Defense Panel Member

Justin Alfred Palino
Kelwin Edrick Keh

Abstract/Summary

The topic on the presence of the random walk hypothesis (RWH) and the application of technical analysis in stock markets has been a long ongoing debate among its participants. Despite this, not many studies have been done contextualizing these theories and analyses to the stock market in the Philippines. With this, the paper aimed to determine the validity of the RWH in the Philippine stock market and whether technical analysis can be applied as an investing strategy. The research utilized the Philippine Stock Exchange Index, BPI Invest Philippine Equity Index Fund, BDO Equity Index Fund, Metro Philippine Equity Index Tracker Fund, and First Metro Philippine Equity Exchange Traded Fund as representations of the Philippine stock market with the PSEi as a reference to the funds being analyzed. Through the employing of statistical tests to confirm these theories and analyses, the researchers were able to find that while other tests showed that the funds deviated from the RWH, there remain a few that confirm its presence in the Philippine stock market. Consequently, the examination of the application of technical analysis, specifically the indicators Simple Moving Average (SMA) and Moving Average Convergence Divergence (MACD), showed statistical significance. However, the results of prior tests confirming some degree of presence of RWH in the funds observed would be affecting the results of the indicators.

Abstract Format

html

Language

English

Format

Electronic

Keywords

Stock exchanges—Philippines; Stocks—Prices—Philippines

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Embargo Period

8-7-2023

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