Building and evaluating the performance of active momentum portfolios in the Iraq Stock Exchange

Abstract

Markets has more active economic actions which changing dramatically among different sectors, especially stock market activity as a requirement for meeting investment needs and money growth. Where portfolio considered as the first step for it and the important for investment activity. Add to that various desires of investors, their risk aversion and return preferences. That brings numerous method and approaches in portfolio formation. Which developed as financial Market and his instruments and approaches. Moreover, from it technical analysis approach, which featured with vast growth in recent decades because of it's depending on information technology and a variety of investors behaviors. Which reflected on his multiple instruments and applications. From it the momentum phenomena which current study deal with it. After studying it in financial markets over the world. Current study tries to use it as technical style to building superior Active portfolio, the study conclude that momentum strategies cannot achieve superior return in Iraqi financial market only in winners portfolios because of the momentum effect very weak and high transaction cost will terminate the return for that the study recommended to make transaction cost less as possible and study another technical analysis methods to enable Iraqi investor to employ vast approaches in its investments .