GHANA STOCK EXCHANGE WEEK FROM 20-01-20 TO 24-01-20

THE GHANA STOCK EXCHANGE WEEK FROM 20-01-20 TO 24-01-20 CONFIRMED WHAT I WROTE L AST WEEK. IT STABILISED, AND SEEMS TO SLOWLY MOVE UP THE LADDER OF SUCCESS.

THE FINANCIAL SECTOR IS LEADING THIS STABILISATION. WE CAN SAY THAT, BECAUSE THE FINANCIAL SECTOR HAS FINALLY MOVED INTO POSITIVE TERRITORY. YEAR-TO-DATE (YTD), THE FINANCIAL INDEX ROSE 1.12% (SEE https://gse.com.gh/#1537892250859-9ee02099-32e0 ).

ALTHOUGH THE COMPOSITE IS STILL IN MINUS – 0.37% – WE CAN ALSO SEE A POSITIVE DEVELOPMENT HERE. THE VOLATILITY IS NOT SO EXCESSIVE THAT THE DANGER OF AN ABRUPT DOWNTURN IS EMINENT. (VOLATILITY IS THE LIABILITY TO CHANGE RAPIDLY AND UNPREDICTABLY, ESPECIALLY FOR THE WORSE.) WE CAN EXPECT THE ALSO THE COMPOSITE WILL BE IN THE POSITIVE AREA BY THE END OF THIS WEEK.

THIS POSITIVE DEVELOPMENT ON THE GHANAIAN STOCK MARKET GOES HAND IN HAND WITH MOODY’S JUDGMENT OF THE GHANAIAN ECONOMY. THE RATING AGENCY ON THE 24TH OF JANUARY CHANGED THE OUTLOOK FOR GHANA FROM STABLE TO POSITIVE. https://www.ghanaweb.com/GhanaHomePage/business/Ghana-s-economy-at-all-time-best-in-a-decade-Moodys-Ratings-847717

THE INTERESTING ISSUE IN THIS STATEMENT IS THAT MOODY’S SEES MORE FISCAL IMPROVEMENT UNDER THE CURRENT GOVERNMENT. THIS ACCOUNTS FOR THE MEDIUM TERM. THE RATING AGENCY ALSO SEES AN IMPROVEMENT IN MACROECONOMIC STABILITY. IN ALL, MOODY’S SEES AN IMPROVEMENT OR AT LEAST POSITIVE PERSPECTIVE IN MOST MACROECONOMIC DATA IN THE LAST YEARS.

MACROECONOMIC DEVELOPMENT AND THE DEVELOPMENT ON STOCK EXCHANGES ARE NOT ALWAYS IN THE SAME DIRECTION. BUT THERE IS NO DOUBT THAT BOTH ARE RELATED TO SOME EXTENT. THIS IS BECAUSE THE FINANCIAL SECTOR IS AN INTEGRAL PART OF EVERY ECONOMY. CONSEQUENTLY, POSITIVE MACROECONOMIC DATA WILL HAVE AN INFLUENCE ON THE STOCK MARKET. ON THE OTHER HAND, OF COURSE, A POSITIVE STOCK MARKET ALSO CONTRIBUTES TO MACROECONOMIC DEVELOPMENT.

THEREFORE, I AM SURE THAT THE GHANA STOCK EXCHANGE WEEK FROM 20-01-20 TO 24-01-20 IS THE STARTING POINT. THE STOCK MARKET WILL DEVELOP POSITIVELY THROUGHOUT THE NEXT MONTHS AND THE WHOLE YEAR. I WILL FOLLOW THE WAY IT TAKES EVERY WEEK ON GHANA RESEARCH.

STAY TUNED!

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