THE WEAK FORM MARKET EFFICIENCY AND THE NIGERIAN STOCK EXCHANGE

This study examined the weak- form efficiency of the Nigerian stock market. This was done by using the Partial autocorrelation (PACF) test to test for independence of stock prices, the runs test and the distribution patterns to test for randomness of stock prices and the one-sample Kolmogorov Smirnov test to test for observable trend in the pattern of stock price movements. The movements of stock prices in the stock market were found to be independent. The movements of stock prices in the stock market were not random. There was an observable trend in the pattern of stock prices movement in the stock market. The result of the partial auto correlation test indicates that the movements of the stock prices are independent. In addition, the result of the runs test and the distribution patterns also shows that the movements of stock prices were not completely random. Key-words Stock exchange, market efficiency, weak form, price movement, information efficien