African stock markets show signs of unpredictability, impacting investment decisions.
The article examines African stock markets to see if their price movements follow a random pattern. They looked at South Africa, medium-sized markets like Egypt and Nigeria, and smaller markets like Botswana. The researchers found that in seven of these markets, stock prices do not follow a random walk due to patterns in returns. However, in South Africa, the stock market does follow a random walk. The study also suggests factors that could influence whether a market behaves randomly or not.