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Monthly Patterns in Egyptian Stock Market

International Journal of Financial Management

Volume 6 Issue 4

Published: 2016
Author(s) Name: Ahmed Ahmed, Sohair Ahmed | Author(s) Affiliation:
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Abstract

In this paper, monthly effect in Egyptian stock market is investigated for the period January 2007 to July 2015. After examining the random walk hypothesis of the return series, a Seasonal Autoregressive Moving Average (SARMA) model is specified to test the monthly effect in Egyptian Stock market. The results of the study imply that the banking sector of stock market is informationally efficient and does not confirm to the existence of seasonality in stock returns.

Keywords: Stationarity, Weak Efficient Market Hypothesis, Seasonality, Time Series

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