Weak Form Efficiency of the Nigerian Stock Market: An Empirical Analysis (1984 – 2009)

Weak Form Efficiency of the Nigerian Stock Market: An Empirical Analysis (1984 – 2009)

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This paper examines the weak-form of the efficient markets hypothesis for the Nigerian Stock Exchange (NSE) by testing for random walks in the monthly index returns over the period 1984-2009.The results of the non-parametric runs test weleda skin food 75ml best price show that index returns on the NSE display a predictable component, thus suggesting that traders can earn superior returns by employing trading rules.Statistically significant deviations from randomness are also suggestive of sub-optimal allocation of investment capital within the economy.

The findings, in general, contradict the weak-form of the efficient markets hypothesis, and a range of policy strategies for improving the motovox scooter parts allocative capacity and quality of the information environment of the NSE are discussed.