GHANA STOCK EXCHANGE WEEK FROM 03-02-20 TO 07-02-20

GHANA STOCK EXCHANGE WEEK FROM 03-02-20 TO 07-02-20 WILL THIS TIME INCLUDE MONDAY, 10TH OF FEBRUARY, 2020. OBVIOUSLY, THE OVERVIEW SHOWS THAT THE RECENT STABILISATION OF THE FINANCIAL MARKETS REMAINS ON COURSE. SEE: https://gse.com.gh/#1537892250859-9ee02099-32e0 

AS THE YESTERDAY CONCLUDED ARTICLE SERIES SHOWED, THE FINANCIAL SECTOR OF THE ECONOMY IS ON THE PATH OF SUCCESS. THAT REFLECTS IN THE PERFORMANCE OF THE GHANA STOCK EXCHANGE. AFTER THE BIG JUMP AT THE END OF LAST YEAR, BOTH INDECES REMAINED ON A COMPARATIVELY HIGH LEVEL. FOR THE FIGURES, SEE Summary-of-Economic-Financial-Data-January-2020, PAGE 10.

ESPECIALLY THE FINANCIAL REMAINED ON THE ONCE GAINED HIGH LEVEL. IT IS MERELY UNCHANGED SINCE THE BEGINNING OF THE YEAR. ON THE OTHER HAND, THE COMPOSITE LOST A LITTLE. BUT AS WE CAN SEE, THE DROP IS NOT SO EXTREME THAT WE MUST BE CONCERNED. FOR SOME FEW DAYS, THE COMPOSITE WAS EVEN IN PLUS THIS YEAR. FURTHERMORE, THE VOLATILITY IS NOT VERY HIGH. VOLATILTY IS A FAST AND UNFORESEEN CHANGE, ESPECIALLY IF IT IS TO THE WORSE. THIS SHOWS THAT AN EXTREME LOSS IN ANY OF THE INDECES IS RATHER UNLIKELY.

THE OPPOSITE IS THE CASE. THE COMBINATION OF THE BLOSSOMING ECONOMY AND THE RECENT STABILISATION GIVE REASON TO HOPE FOR A POSITIVE DEVELOPMENT. AND AS THE COMPOSITE MANAGED TO JUMP THIS MONDAY, NOT ONLY THE FINANCIAL WILL PROBABLY GAIN IN FUTURE. BUT GIVEN THE UNDERLYING FUNDAMENTALS, A POSITIVE DEVELOPMENT OF THE FINANCIAL IS MORE LIKELY. WE BASE THIS EXPECTATION ON THE MANAGEMENT OF FINANCIAL INSTITUTIONS PROBABLY BEING BETTER THAN IN THE NON-FINANCIAL COMPANIES. THE REASON FOR THIS, AMONG OTHERS, IS THE CLEAN-UP EXERCISE OF THE CENTRAL BANK.

GHANA STOCK EXCHANGE WEEK FROM 03-02-20 TO 07-02-20 SHOWS WE HAVE A FOUNDATION FOR A POSITIVE DEVELOPMENT OF THE FINANCIAL MARKETS IN 2020. BUT THERE IS ALWAYS A BIT OF UNCERTAINTY IN FINANCES. LET’S HOPE THAT MY EXPECTATION COMES TRUE.

STAY TUNED!

 

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