Testing the weak form state of market efficiency : an empirical evidence of Shariah compliant index

الملخص EN

The Efficient Market Hypothesis (EMH) proposed by Fama is considered a central premise to explain market functioning.

Current research tests the stock returns behaviour of Shar¯ı‘ah-compliant Karachi Stock Exchange Meezan Index (KMI 30) under weak form efficiency.

Based on the nature of data, i.e.

time series, both linear and non-linear techniques are employed to assess market efficiency.

The study results portray that KMI-30 is an inefficient market, and there is dependence in the series.

KAUJIE Classification: L24, L4, L31, V12 JEL Classification: C1, G21, G24