Testing weak - form efficiency of Ho Chi Minh stock exchange (HOSE)
Abstract
The study of market efficiency is especially important in Vietnam for two main reasons. The first reason is that there seems to be very few researches about the
efficiency in the Vietnamese stock market. The second is that the research of market
efficiency is the best describer of Vietnamese stock market operation, which will provide useful knowledge to investors who participate in the stock market.
The result of this research is useful for investors in analyzing securities and building an investment‟s portfolio in Vietnam. If the stock market is efficient in weak- form, random walk hypothesis will be employed. Then investors should catch all of necessary information and react quickly in their investment activities to get profit. In contrast, if the stock market is not efficient in weak-form, the investors can base on past trend of stock price to forecast future stock price by using technical analysis‟s tools.