GHANA STOCK EXCHANGE WEEK FROM 10-02-20 TO 14-02-20

GHANA STOCK EXCHANGE WEEK FROM 10-02-20 TO 14-02-20 ENDED A LITTLE BIT LOWER THAN IT STARTED. (SEE https://gse.com.gh/#1537892250859-9ee02099-32e0)                        BUT SHOULD THAT CHANGE OUR OPINION ABOUT THE FUTURE DEVELOPMENT?

I BELIEVE NOT. MY ASSESSMENT CONCERNING THE LOCAL FINANCIAL MARKET REMAINS THE SAME AS IT HAS BEEN SINCE THE BEGINNING OF 2020. THE FUNDAMENTALS ESPECIALLY IN THE FINANCIAL SECTOR ARE STILL WHERE THEY SHOULD BE. AND THE FUNDAMENTALS OF THE FINANCIAL MARKETS ARE IMPORTANT FOR EVERY ECONOMY. THAT IS BECAUSE THE FINANCIAL MARKETS MUST SUPPLY THE OTHER PLAYERS IN THE ECONOMY WITH ENOUGH LIQUIDITY TO OPERATE.

IN THE LAST MONTHS, THE AVERAGE LENDING RATE TO THE PRIVATE SECTOR HAS STEADILY GONE DOWN. THE SAME ACCOUNTS FOR THE SUPPLY OF CREDIT TO THE PRIVATE SECTOR. THIRDLY, APART FROM THE LAST MONTH, THE BUSINESS CONFIDENCE INDEX WAS GOING NORTH. IN MY OPINION, THAT SHOWS THAT NOT ONLY THE FINANCIAL INDEX HAS A POSITIVE FUTURE.

AS I SAID ABOVE, DEVELOPMENT OF THE FINANCIAL SECTOR IS ALWAYS IMPORTANT FOR THE DEVELOPMENT OF THE WHOLE ECONOMY. THAT IS WHY THE CLEAN UP OF THE FINANCIAL SECTOR WAS – AND STILL IS – OF ENORMOUS NECESSITY FOR GHANA.

IT WILL SURELY TAKE SOME TIME UNTIL THE GHANAIAN POPULATION WILL REGAIN FULL CONFIDENCE IN FINANCIAL INSTITUTIONS. BUT THE GOVERNMENT HAS INITIATED A SUCCESSFUL START. FURTHERMORE, IT NOW DEPENDS ON THE GOVERNMENT TO ATTEND TO THE EXPECTATIONS OF THE VICTIMS OF FINANCIAL FAILURES.

BUT WE MUST ALSO CONSIDER THAT MUCH OF THE LOSSES INVESTORS SUFFERED WAS DUE TO LACK OF FINANCIAL KNOWLEDGE. THAT’S WHY FROM BEGINNING OF APRIL ON, GHANARESEARCH WILL OFFER A COURSE IN FINANCE BASICS ON https://education.ghanaresearch.org/

NOW WE ARE GOING BACK TO OUR GENUINE SUBJECT FOR A FINAL ASSESSMENT .

GHANA STOCK EXCHANGE WEEK FROM 10-02-20 TO 14-02-20 IS A LITTLE BIT LOWER THAN THE WEEK BEFORE. BUT I DON’T SEE ANY REASON TO PANIC. THE FUNDAMENTALS ARE OKAY, THE VOLATILITY NOT EXCESSIVE. FOR MY UNDERSTANDING, THE GHANA STOCK EXCHANGE STILL HAS A BRIGHT FUTURE THIS YEAR.

STAY TUNED!

 

 

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