Can Technical Analysis Generate Superior Returns in Securitized Property Markets? Evidence From East Asia Markets

Alhashel, B., Almudhaf, F., and Hansz, J. (2018) “Can technical analysis generate superior returns in Asia-Pacific securitized property markets?, Pacific-Basin Finance Journal, 47, 92-108.

Posted: 24 Aug 2020

See all articles by Bader Alhashel

Bader Alhashel

Kuwait University

Fahad Almudhaf

Kuwait University - Department of Finance and Financial Institutions

J. Andrew Hansz

E.V. Williams Center for Real Estate

Date Written: 2018

Abstract

This study applies various popular technical trading rules to Asian property market indices from 1995 to 2015 to investigate the profitability of these rules. The results validate the predictive and profitability power of technical indicators in the markets of Indonesia, Malaysia, Taiwan, and Thailand but not in the markets of China, Hong Kong, Japan, the Philippines, and Singapore. For markets in which technical indicators are predictive, this ability is proven useful in generating returns in excess of buy-and-hold returns using four different trading strategies. The study's results hold even after including transaction costs, adjustments for risk, and data snooping. The results for the markets in which technical analysis is fruitful contradict weak-form market efficiency, whereas markets in which technical analysis is not successful are at least weakly efficient.

Keywords: East Asia Real Estate, Market Timing, Technical Analysis, Trading Indicators, Market Efficiency

JEL Classification: G12, G14, G15

Suggested Citation

Alhashel, Bader and Almudhaf, Fahad and Hansz, J. Andrew, Can Technical Analysis Generate Superior Returns in Securitized Property Markets? Evidence From East Asia Markets (2018). Alhashel, B., Almudhaf, F., and Hansz, J. (2018) “Can technical analysis generate superior returns in Asia-Pacific securitized property markets?, Pacific-Basin Finance Journal, 47, 92-108. , Available at SSRN: https://ssrn.com/abstract=3655719

Bader Alhashel (Contact Author)

Kuwait University ( email )

College of Business Administration
Kuwait University
Shuwaikh, 5486
Kuwait

Fahad Almudhaf

Kuwait University - Department of Finance and Financial Institutions ( email )

Kuwait

J. Andrew Hansz

E.V. Williams Center for Real Estate ( email )

Norfolk, VA 23529-0222
United States
7576833505 (Phone)

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