The Weak Form of Informational Efficiency – A Case Study of Muscat Securities Market, Sultanate of Oman

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Published: Sep 19, 2021
Keywords:
Efficient Market Hypothesis, MSM 30 Index, Muscat Securities Market, Weak form of Efficiency

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Dr. T.V.V. Phani Kumar
Faculty Member, Department of Business Studies, Higher College of Technology, Muscat, Oman.
Hudham Badar Al-Rawahi
B.Tech (Accounting) Student, Department of Business Studies, Higher College of Technology, Muscat, Oman.
Eithar Adil Al-Busaidi
B.Tech (Accounting) Student, Department of Business Studies, Higher College of Technology, Muscat, Oman.
Rawan Said Al-Wahaibi
B.Tech ( Accounting) Student, Department of Business Studies, Higher College of Technology, Muscat, Oman.

Abstract

Market efficiency means the degree to which market prices reflect all available and relevant information. Efficient Market Hypothesis (EMH) is theory in financial economics, which focuses on informational efficiency and measures whether the share prices reflect the available information. The presence of informational efficiency in the market will not provide an opportunity for the fundamental and technical investors to beat the market return. Hence, the researchers conducted the present study to examine whether the weak-form of efficiency applies to the Muscat Securities Market, Oman using Runs test, Serial Correlation test and Unit Root test. The closing value of MSM 30 index and the closing share prices of the thirty companies representing MSM30 index for a period of 10 years i.e. from 1st Jan 2009 to 31st December 2018 were considered for the analysis. The results of the study will help the investor to understand whether technical analysis provides an opportunity to take better investment decisions.

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How to Cite
Dr. T.V.V. Phani Kumar, Hudham Badar Al-Rawahi, Eithar Adil Al-Busaidi, & Rawan Said Al-Wahaibi. (2021). The Weak Form of Informational Efficiency – A Case Study of Muscat Securities Market, Sultanate of Oman. International Journal of Management Studies (IJMS), 6(3), 29–34. Retrieved from https://researchersworld.com/index.php/ijms/article/view/941
Issue
Vol. 6 No. 3 (2019)
Section
Articles
Copyright (c) 2019 ERM PUBLICATIONS

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