A review of the efficiency of the Johannesburg Stock Exchange

Abstract

In recent years there has been considerable evidence which contradicts the efficient market hypothesis. This evidence is reviewed with particular attention to the JSE, The efficiency of the JSE is evaluated by using an efficiency scale which ranges from perfect efficiency to outright inefficency. The evidence indicates that superior performance is out of reach for all but a few professional investors. The only group of investors who are able to consistently outperform the market are company officers who trade on inside information.