Abstract

This paper examines whether there is an existence of a short-term contrarian profits at the firms in Kuwait Stock Exchange (KSX). The role of return seasonality is also investigated. This article documents strong evidence for the short-term contrarian strategy in the Kuwait stock exchange. The result of this study finds that the short-term contrarian profits for the Kuwait market can’t be explained by January effect. In spite of whether losers are smaller or larger than winners, there are short-term abnormal profits. Finally, this paper shows a strong symmetry between the winner and loser portfolios.

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