Abstract
This paper investigates the roles played by technicians and fundamentalists in the emerging stock market of Kuwait. The impact on stock prices of traders whose actions are founded on technical analysis is differentiated from the impact of traders whose actions are based on fundamental analysis. This differentiation is performed by formulating, estimating and testing a model relating changes in stock prices to the actions of fundamentalists, technicians and the government. Both technicians and fundamentalists are found to contribute to stock price determination, with the former contribution appearing more significant, even when accounting for governmental intervention. Some explanations for these findings are presented.
Published Version
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