Ifa Comparing Between Klci and Nestle
Total Return for KLCI and Nestle (Malaysia) Berhad
It is well-known that stock prices fluctuates and changing all the time. Therefore, we have did some observation and analysis for a period on Nestle (Malaysia) Berhad company before we decide where to invest the RM500, 000. 00.
On 20 May 2013, when the Nestle company’s selling price at RM65.100 each share (considered as low price) as followed the Bursa Malaysia share price, we have invested a large portion of our capital in the Nestle company share instantaneously. We have bought 50 lots (5000 number of share) of share at share price RM65.100 each share with total RM325,500.00. Well, after one month (21 June 2013), the Nestle company’s buying share has increased to RM65.840 each share as followed the Bursa Malaysia share price at 3.41p.m. Therefore, we sold out all the shares that we bought on 20 May 2013 at share price of RM65.840 each share (+ RM0.740) with total RM329,200.00.
Total Return for Nestle company shares
Total Return in Percentage :
Interim dividend + (Ending share price – Beginning share price) / Beginning share price
= NIL + (RM65.84- RM65.10) / RM65.10
=1.14% (1.137% nearest to 2 decimal places)
Total Return in RM :
(Ending share price x No. of share bought) – (Beginning share price x No. of share sold)
= (RM65.84 x 5000) – (RM65.10 x 5000)
= RM329,200 – RM325,500
= RM3700
The total return for Nestle company share from 20 May 2013 to 21 June 2013 is RM3700 (1.14%). There is a positive percentage and amount of the total return. Thus, we have earned some profit from Nestle Berhad within one month.
Assumption: There is no dividend for shareholders within this period.
As to compare the total return of Nestle company share with the total return of KLCI index. We have calculate the total return of KLCI index from 20 May 2013 to 21 June 2013.
Total Return for KLCI index:
KLCI index on 20 May 2013 : 1,777.15
KLCI index on 21 June 2013 : 1,755.85 (KLCI on 21 June 2013 – KLCI
It is well-known that stock prices fluctuates and changing all the time. Therefore, we have did some observation and analysis for a period on Nestle (Malaysia) Berhad company before we decide where to invest the RM500, 000. 00.
On 20 May 2013, when the Nestle company’s selling price at RM65.100 each share (considered as low price) as followed the Bursa Malaysia share price, we have invested a large portion of our capital in the Nestle company share instantaneously. We have bought 50 lots (5000 number of share) of share at share price RM65.100 each share with total RM325,500.00. Well, after one month (21 June 2013), the Nestle company’s buying share has increased to RM65.840 each share as followed the Bursa Malaysia share price at 3.41p.m. Therefore, we sold out all the shares that we bought on 20 May 2013 at share price of RM65.840 each share (+ RM0.740) with total RM329,200.00.
Total Return for Nestle company shares
Total Return in Percentage :
Interim dividend + (Ending share price – Beginning share price) / Beginning share price
= NIL + (RM65.84- RM65.10) / RM65.10
=1.14% (1.137% nearest to 2 decimal places)
Total Return in RM :
(Ending share price x No. of share bought) – (Beginning share price x No. of share sold)
= (RM65.84 x 5000) – (RM65.10 x 5000)
= RM329,200 – RM325,500
= RM3700
The total return for Nestle company share from 20 May 2013 to 21 June 2013 is RM3700 (1.14%). There is a positive percentage and amount of the total return. Thus, we have earned some profit from Nestle Berhad within one month.
Assumption: There is no dividend for shareholders within this period.
As to compare the total return of Nestle company share with the total return of KLCI index. We have calculate the total return of KLCI index from 20 May 2013 to 21 June 2013.
Total Return for KLCI index:
KLCI index on 20 May 2013 : 1,777.15
KLCI index on 21 June 2013 : 1,755.85 (KLCI on 21 June 2013 – KLCI