Relationship between institutional trading and price momentum for companies quoted at the Nairobi Stocks Exchange
Rasugu, C Obwogi
MetadataShow full item record
The purpose of this study was to examine the relationship between Institutional trading and price momentum of stocks quoted at the Nairobi stocks exchange. It investigated the patterns of institutional investors portfolio formation, returns of portfolios in periodical basis and end periods of calendar years . It was an empirical study that involved using secondary data obtained from the Nairobi Stocks Exchange library. The data was segregated in to portfolios of past winners and losers of first 3 months of trading year and at the same time reference being made on the level of institutional ownership competition in the start and in subsequent trading periods of the period. The research data was then analyzed using Statistical Package for Social Sciences (SPSS) and was presented in tables, percentages, and means. The study established that the there is no direct relationship between the level institutional ownership and price momentum, both in positive returns and in negative price momentum , and in this case there were mixed trades of both parties in either winner and loser portfolios . In addition the last period under study was significantly influenced by other factors other than trading and performance factors. The study concluded that there was no significant relationship between institutional trading and price momentum and that price momentum. The study recommends a further study of effects of level of capitalization of companies in respect to institutional trading levels ..
University of Nairobi, Kenya