Return Dynamics in Africa's Emerging Stock Markets

Stock markets play an increasingly important part in economic life. This is true for the public at large, of corporations, of hedge funds, of regulatory authorities, of treasury chiefs and, of course of students and academics who take keen interest in analysing the behaviour of stock prices. Stock price movements are nowadays part of the background of all our lives. Although not a perfect indicator, stock markets tend to predict recessions as they fluctuate with economic activity. Over the past three decades developing countries have expanded stock markets owing to the obvious benefits that they deliver. In Africa, the number of stock markets increased from only six before 1989 to 21 by 2004, and currently 24. This book examines the underlying dynamics of stock price behaviour of Africa's most developed markets.