An analysis of price movement for selected stocks in Nairobi stock exchange

Abstract

The aim of the study was to analyze the price movement of selected securities in the NSE. The objectives were to identify a pattern for stock movement, determine the factors that affect share prices and to determine a predictive model for stock movement in NSE. The model was developed using a PC-give (version 6) software package. Using the model,the prices from the month of May 1996 to April 997 were computed and compared with the actual on . T -test were carried out to determine whether the two price were significantly different from each other. Forecast Chi-square and chow test were computed to test for parameter consistency . All data was obtained from the data bank from the Secretariat of NSE in form of raw published stock price list . Data covering the period l st January 1992 to 30th April 1997 was collected......................................................................................