GHANA STOCK EXCHANGE WEEK FROM 13-01-20 TO 17-01-20

GHANA STOCK EXCHANGE WEEK FROM 13-01-20 TO 17-01-20 CONFIRMED GENERALLY WHAT I SAID LAST WEEK. IT SEEMS THAT IT HAS FOUND ITS BASE BY THE END OF LAST YEAR. THIS IS A BASE ON WHICH A POSITIVE DEVELOPMENT CAN GROW.

BOTH INDEXES – THE COMPOSITE AND THE FINANCIAL – ARE STILL A LITTLE BIT IN MINUS FOR THE YEAR. FOR THE COMPOSITE, IT IS 0.74%, AND FOR THE FINANCIAL 0.58% (SEE https://gse.com.gh AND CLICK ON “INDEX PERFORMANCE”). THAT SEEMS A LITTLE BIT DISAPPOINTING AT FIRST SIGHT.

BUT WE HAVE TO CONSIDER THAT WE COME FROM A VERY BAD YEAR. THIS NEEDS A TIME OF STABILISATION FIRST OF ALL. IT WOULDN’T BE HEALTHY FOR THE DEVELOPMENT OF THE GSE, IF THE INDEXES WOULD JUMP UP EXTREMELY.

FOR MY UNDERSTANDING, THE VOLATILITY IN BOTH INDEXES IS STILL A LITTLE BIT TOO MUCH EVEN. ON THURSDAY, COMPOSITE AND FINANCIAL WERE NEAR TO GO POSITIVE FOR THE YEAR. INSTEAD, ON FRIDAY THEY WENT DOWN AGAIN.

BUT THAT SHOULDN’T BOTHER US TOO MUCH. FACT IS THAT THERE IS A STABILISATION FACTOR WHICH WE HAVEN’T SEEN THROUGHOUT THE LAST YEAR. THAT MIGHT ALSO BE DUE TO THE – HOPEFULLY – GROWING BUSINESS CONFIDENCE IN THE COUNTRY.

TOWARDS THE END OF THE MONTH, WE WILL SEE WHETHER THIS TREND WILL GO ON. BY THAT TIME, THE JANUARY MEETING OF THE MONETARY POLICY COMMITTEE (MPC) OF THE BANK OF GHANA WILL BE OVER. PARALLEL TO THAT, THE MPC WILL ISSUE THE SUMMARY OF ECONOMIC AND FINANCIAL DATA FOR GHANA. GHANA RESEARCH WILL – AS USUAL -EXAMINE THESE DATA IN A THREE ARTICLE SERIES.

I BELIEVE THAT THE TIME HAS COME WHEN THE ECONOMY IN GHANA BEARS THE FIRST FRUITS OF THE EFFORTS OF THE GOVERNMENT. THIS IMPROVEMENT IN THE ECONOMY WILL ALSO REFLECT ON THE GHANA STOCK EXCHANGE. I’M EVEN PREDICTING THAT THE CREDIT VOLUME TO THE PRIVATE SECTOR WILL INCREASE. THIS WILL ACCOUNT FOR THE BUSINESS AS WELL AS THE CONSUMPTION SECTOR. AN INCREASE IN CREDIT VOLUME WILL LEAD TO MORE BUSINESS ACTIVITY IN THE COUNTRY. CONSEQUENTLY, INCREASED BUSINESS ACTIVITY WILLTHEN PROBABLY TO MORE EMPLOYMENT AND MORE CONSUMPTION.

AS YOU SEE, I’M RATHER OPTIMISTIC IN VIEW OF THE ECONOMY IN GHANA. THIS WILL ALSO REFLECT ON THE GHANA STOCK EXCHANGE IN FUTURE.

GHANA STOCK EXCHANGE WEEK FROM 13-01-20 TO 17-01-20 IS ONLY THE BEGINNING. THE ECONOMIC FUTURE OF GHANA FOR THE NEXT FIVE YEARS LOOKS BRIGHT.

STAY TUNED!

 

 

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