BSE needs an overhaul - study

According to research conducted by Bank of Botswana analysts who used the time series analysis to gauge the efficiency of the BSE, the bourse's returns on the mainstream Domestic Companies Index (DCI) follow a long memory process, which stands against the precepts of the efficient market hypothesis.

The DCI measures the performance of the counters on the domestic board. The research also showed that the DCI trends are not easily predictable on the basis of past volatility, making it difficult for analysts to come up with forecasts and chart analysis.