The Relevance and Performance of TNB Stock: A Comparison to the Malaysian Stock Market

Abstract

The purpose of the study had been aimed to further the understanding in exploring the relevance performance of the monopoly stock of Tenaga Nasional Berhad (TNB) to assess the stock performance return in comparison against the Malaysian stock market with reference towards the measurement of the Kuala Lumpur Stock Exchange (KLSE) market index performance as the benchmark. With reference to the previous studies, there is relevance support to identify the tendency of the findings to suggest the higher performance for the major stocks like TNB stock where the business model of TNB being monopolizing the industry creating the upper hand for the stability in driving the revenue and profit leading to higher value in the stock price. The methodology of the research had further the quantitative analysis study using the historical data of 10years from 2014 to 2023 to identify the potential pattern and trend to assess the comparison for the performance and trading trend for both the TNB stock and market index of KLSE. The outcome of the research had suggested the sufficient evidence to identify the higher average return for the TNB stock over the negative return average being achieved by the KLSE market index putting clear picture on the higher performance of the monopoly TNB stock. In addition, the growth of the trading volume trend had suggested that the investors are being higher confidence towards the growth of the TNB stock where the growth of the trading volume for TNB stock is higher than the trading volume for KLSE market index and even exceeding the average return for the TNB stock. This had been in alignment with the previous study where the outcome for the study had created the significant contribution towards the academic and investors to invest in the monopoly stock like TNB and extending the potential area of study for the future research.

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