INTRODUCTION
Indices are the indicators of the performance of the stock market. Bursa Malaysia computes an
index for each of the main sectors. The most common indices is the KLSE Composite Index(CI). Stock market is the quickest method for investors to make money but the investment
involve very high risk. The number of people making money in stock market is less compare to
number of loser in the stock market. To increase the chances of making money, we should
analyze the company by tracking the financial performance. It is believed that only good
financial performer will give a good return to the investors in the long run. In the normal
condition, financial ratio will be used to predict the financial performance of a company.
However, while analyzing the performance using financial ratio, investors need to look at the
many ratios. The investors need to look at all the ratio calculated and make their own conclusion.
There is no a single ratio that can tell the investors is the company worth to be invested. This
problem can be solved by using DEA (data envelopment analysis). DEA allows multiple factors
to be combined and get a single ratio, which tell the investors the efficiency of the company.