Publication Details
Abstract
This study examines the efficiency of The Nigeria Stock Exchange in the weak-form level and the predictability of equity prices/returns using monthly observations using Runs Test. The data set covers the period of ten years- January, 2013 to December, 2022. The stocks were randomly selected based on their ability to trade frequently on the floor of the market, and absorb the shocks of thin trading with irregular hiking. All time-series data were obtained from The Nigeria Stock Exchange database. The study employed non-parametric tool: runs test. The empirical evidences obtained from the study are mixed. Indeed, while some studies show empirical results that support the weak form of EMH, other evidences reject the null hypothesis. The policy implication of the analyses is that the Nigeria Stock Exchange, as an emerging market, must be closely monitored to achieve an optimal maturity level. It is therefore recommended that policy makers to enlighten potential investors of the opportunities that are available in the stock market. Such enlightenment should seek to stimulate their interest in capital market activities and thus increase the breadth and depth of the capital market.