| dc.description.abstract | The primary purposes of the study were to study the effect of online and
mobile trading practices on the active momentum trading at Nairobi
Securities Exchange. The target population was companies listed in Nairobi
Securities Exchange and had do make up NSE 20 Share Index. The results of the
study were both qualitative and quantitative. Quantitative data collected from NSE
2010 to 2012 historical trade price, NSE 20 share Index value and number of share
traded each day was analyzed using multiple regression analysis and the correlation
was determine as well as hypothesis testing to determine the validity of the
equation obtained. The information was also represented by use of graphs, table,
and pie charts and in prose-form. This was done by gathering and analyzing data,
then using excel to computes and present the figures. The research found out that
indeed internet and mobile device usage has indeed affected momentum trading in
Nairobi Securities Exchange. Introduction of Broker Back Office System, (BBOS)
in September 2011 which we can highlight as being an activity that did changed the
NSE to an online trading practicing. Using momentum trading strategies which
operate on shorting any stock that touches its six month low and longing stock that
touches six month high internet has facilitated easier tracking of their price and
also efficiency in executing the transaction regardless of the location. The study
found that just as the in the banking sector where the influence was there but still
low the same happens in the securities exchange. The study recommends further
research on how internet is influencing and affecting different sector in Kenyan
economy especially securities market. Also it did recommend necessary promotion
steps to educate potential investor of the benefit of online and mobile trading. From
the study there is a need to improve on cybercrime security to avoid investors
losing fund. Also there is a need to lower related cost as online system is much
cheaper and to improve the efficiency and ease of use from different broker
agencies interfaces. | en_US |
