Market Efficiency in the Nigerian and Ghanaian Stock Markets

In literature, there has not been a known comparative study published on Nigeria and Ghana stock markets. The study is considerably important to enable a fair comparison of the level of improvement on the Ghanaian and Nigerian Stock-Exchanges. We observed market responsiveness to information. We engaged Partial Autocorrelation in testing the independence of prices. We used One-sample Kolmogorov Smirnov to investigate recognizable trends in movement of prices. Price movements were found independent in these two markets. Results of the Partial Auto Correlation's test show independent movements of prices. However, Runs and Distribution patterns display prices movement, which is not completely random. Study shows that the two markets are similar in every respect as they both exhibit independence in stock movements, show non-randomness as well as the presence of observable trends within the period under study. We conclude that no one could really draw a line of difference between the two markets.