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Forecasting Short-Term FTSE Bursa Malaysia Using WEKA

Author

Listed:
  • Nurhuda Nizar
  • Ahmad Danial Zainudin
  • Ali Albada
  • Chua Mei Shan

Abstract

This study investigates the use of machine learning methods, specifically utilizing the WEKA software, to predict stock prices of the FTSE Bursa Malaysia Kuala Lumpur Composite Index (KLCI). Two algorithms, Sequential Minimal Optimization Regression (SMOreg) and Multilayer perceptron (MLP), were employed for data analysis. Historical data from January 3, 2023, to December 29, 2023, was used to forecast open, high low, and close prices for ten days. Results from both algorithms were compared, with SMOreg proving to be more accurate than MLP for the dataset. However, it's important to note that further exploration of different forecasting algorithms may lead to even more precise results in the future. The findings of this analysis hold significant implications for investors, as they can use the insights gained to inform their investment strategies. By leveraging machine learning techniques like SMOreg within the WEKA framework, investors can potentially make more informed decisions regarding their stock market investments, leading to improved portfolio performance and risk management.

Suggested Citation

  • Nurhuda Nizar & Ahmad Danial Zainudin & Ali Albada & Chua Mei Shan, 2024. "Forecasting Short-Term FTSE Bursa Malaysia Using WEKA," Information Management and Business Review, AMH International, vol. 16(2), pages 104-114.
    • Handle: RePEc:rnd:arimbr:v:16:y:2024:i:2:p:104-114
    DOI: 10.22610/imbr.v16i2(I)S.3773
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    References listed on IDEAS

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