Stock return seasonalities in low-income African emerging markets

Document Type

Article

Publication Date

1-1-1998

Abstract

This paper tests whether the anomalous ‘turn-of-the-year’ effect found in several middle-income and high-income markets around the world, also exists in the low-equity markets of Africa Both the Kruskal-Wa/lis and Friedman tests suggest the absence of seasonality in stock returns on the Nigerian and Zimbabwean stock markets. However, the Friedman test confirms the presence of seasonality in stock returns for Ghana Furthermore, the Wilcoxon-Mann-Whitney test and the dummyvariable regression analysis show the presence of the “January effect “for Ghana but not for Nigeria and Zimbabwe. It is logical to attribute results for Ghana to a spillover of the British January effect, moreso that Ghana is the most open to international (mostly British) investors of the three markets in this. © MCB UP Limited 1998.

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