GHANA STOCK EXCHANGE WEEK FROM 27-01-20 TO 31-01-20

GHANA STOCK EXCHANGE WEEK FROM 27-01-20 TO 31-01-20 SAW BOTH INDECES GO INTO MINUS FOR THE WEEK AGAIN. THE COMPOSITE IS 1.99% LOWER FOR THE YEAR. ON THE OTHER HAND, THE FINANCIAL SLIPPED TO  MINUS 0.85% FOR THE YEAR, IS THAT A CHANGE TO THE WORSE AGAIN FOR THE YEAR?

I WOULD SAY NO. THE FACT THAT BOTH INDECES ARE IN THE NEGATIVE AGAIN MIGHT BE A DISAPPOINTMENT FOR MANY. THIS MIGHT BE ESPECIALLY THE CASE AFTER THE BIG JUMP AT THE END OF LAST YEAR. BUT I DON’T THINK THAT THIS SLIP IS A REASON FOR MUCH CONCERN.

FIRST OF ALL, THE JUMP AT THE END OF LAST WEEK WAS ONLY A RETURN INTO “NORMAL” REGIONS. FOR MY UNDERSTANDING, BOTH INDECES WERE UNDERVALUED BEFORE.

SECOND, THE FUNDAMENTALS ARE A GOOD BASE FOR A POSITIVE DEVELOPMENT. THIS IS ESPECIALLY TRUE FOR THE FINANCIAL INDEX. THE FUNDAMENTALS OF THE BANKING SECTOR ARE GENERALLY ROBUST. I WILL SHOW THAT IN MY ARTICLE SERIES ABOUT THE JANUARY MEETING OF THE BANK OF GHANA MPC. THIS ARTICLE SERIES WILL START TOMORROW.

THIRD, THE FLUCTUATIONS OF THE INDECES ARE NOT IN A WAY THAT WE SHOULD WORRY ABOUT THAT. A HIGH FLUCTUATION – UP AND DOWN MOVEMENT – WOULD SHOW THAT THE MARKETS ARE INSECURE. I DON’T THINK THAT THIS IS THE CASE WITH THE GHANAIAN INDECES. THE MOVEMENTS LOOK MORE LIKE A PROFIT TAKING BY INSTITUTIONAL AND RETAIL INVESTORS. THEREFORE, THERE IS NO REASON TO PANIC.

WE WILL SEE IN THE COMING MONTHS THAT THE GHANA STOCK EXCHANGE IS A REFLECTION OF THE OVERALL ECONOMY. THE ECONOMY WILL BE STABLE AND POSITIVE, AND SO WILL BE THE GHANA STOCK EXCHANGE.

THEREFORE, THE GHANA STOCK EXCHANGE WEEK FROM 27-01-20 TO 31-01-20 IS ONLY A TEMPORARY SLOWDOWN. THE COMING WEEKS WILL SEE A POSITIVE DEVELOPMENT, AND A POSITIVE DEVELOPMENT UNTIL THE END OF THE YEAR.

STAY TUNED!

Leave a Reply

Your email address will not be published. Required fields are marked *