Discovering the Link between Investor Attention and Trade Volume in the Philippine Stock Exchange

• Main Authors: Morando, Patrick Allan G., Banico, Isabel Louise D., Ng, Martin Stevens C., Villardo, Riggs Mattieu M.
• Format: text
• Published: Animo Repository 2020
• Subjects: trade; stock exchange; PSEi; Portfolio and Security Analysis
• Online Access: https://animorepository.dlsu.edu.ph/res_aki/118; https://animorepository.dlsu.edu.ph/context/res_aki/article/1113/viewcontent/Discovering_the_Link_between_Investor_Attention_and_Trade_Volume_in_the_Philippine_Stock_Exchange.pdf
• Institution: De La Salle University

Investors regard trade volume as a crucial technical indicator that can confirm trends, predict trend reversals, and determine liquidity (Westerhoff, 2006; Mahender et al., 2014). Trade volume is reported throughout the current trading day as often as once an hour; however, the reported hourly and end-of-the-day trade volumes are merely estimates. Actual and final trade volumes are reported the following day. Given the relative inconsistency of reported trade volumes and uncertainty of future trade volumes, investors miss the opportunity to reinforce their trading decisions through the trade volume indicator.