| dc.description.abstract | The stock market movements are constantly monitored and persuaded in the global,
regional and local context. Particularly the movement and fluctuations of standard indices
which represent a tool to measure performance and outcomes of the market in term of
growth are closely evaluated. The indices show registered share prices in the market.
Again, they are used as comparable performance indices which investors can use to
measure the performance of their portfolios compared to that of the whole market.
Indices have played an important role in performance measurement as well as in
investment decision making. The study sought to investigate the existence of the
weekend effect in stock returns at the Nairobi Securities Exchange. The study specific
objectives were to find out whether Monday returns are lower than Friday returns. Also
the study was to establish if the market returns followed a particular trend depending on
the trading day.
The sample of the study included all the firms that form the NASI. The index included
companies in the NSE from all sectors namely Agricultural, Automobiles and
Accessories, Banking, Commercial and Services, Construction and Allied, Energy and
Petroleum, Insurance, Investment, Manufacturing and allied and Telecommunication and
Technology. The study required data on NASI index for the period January 2011December
2013. The study relied on secondary data to collect relevant information.
Correlation for the trading days returns shows that there is a weak correlation between
trading day and market returns. Monday mean returns were however negative unlike for
the other days of the week supporting the existence of the weekend effect in the NSE. | en_US |
