Are sukuk markets weak form efficient? Evidence from major active Islamic stock markets

Abstract

The main objective of this study is to explore sukuk markets weak form efficiency level based on random walk hypothesis, to this end we have used the most accurate tests for random walks namely the Augmented Dickey-Fuller unit root test and the Runs test, by studying 34 sakk from eight regions (United States, United Kingdom, Luxembourg, Turkey, Emirates, Saudi Arabia, Kuala Lumpur, Jakarta)using large samples. The findings provided convincing evidence of the weak-form inefficiency of sukuk markets. Thus, we concluded that sukuk markets offer the opportunity to profit from technical analysis.