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? Continue reading “GHANA STOCK EXCHANGE WEEK FROM 27-01-20 TO 31-01-20”

WARREN BUFFETT’S INVESTMENT TENETS 1 – BUSINESS TENETS

The Warren Buffett Way

WARREN BUFFETT IS ONE OF THE WORLD’S MOST SUCCESSFUL INVESTORS. HE BASES HIS INVESTMENT PHILOSOPHIE ON CERTAIN TENETS (PRINCIPLES). KEEP IN MIND THAT THESE TENETS ARE NOT ONLY MEANT FOR INVESTORS. YOU SHOULD ALSO USE THEM IN CASE TOU INTEND TO ESTABLISH A NEW BUSINESS. WARREN BUFFETT’S INVESTMENT TENETS 1 – BUSINESS TENETS DEALS WITH THREE PRINCIPLES ABOUT THE BUSINESS. FOR A DEEPER INSIGHT, DOWNLOAD THE BOOK “THE WARREN BUFFETT WAY” ON TOP OF THIS ARTICLE. KEEP IN MIND THAT NOT ALL TENETS APPLY TO ALL BUSINESSES. Continue reading “WARREN BUFFETT’S INVESTMENT TENETS 1 – BUSINESS TENETS”

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!

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!

 

 

GHANA STOCK EXCHANGE – BACK TO THE FUTURE?

SOME TIME AGO, THE GHANA STOCK EXCHANGE WAS ONE OF THE BEST IN AFRICA. LAST YEAR, IT DROPPED, AND DROPPED, AND DROPPED… IN 2020, HAS THE TIME COME NOW WHEN WE CAN SAY “GHANA STOCK EXCHANGE – BACK TO THE FUTURE”? Continue reading “GHANA STOCK EXCHANGE – BACK TO THE FUTURE?”

BANK OF GHANA MPC NOVEMBER MEETING – PART 3

Summary_of_Economic__Financial-Data_November-2019

MPC-Press-Release-Nov.-2019

IN THE LAST PART OF MY ARTICLE SERIES – BANK OF GHANA MPC NOVEMBER MEETING – PART 3 – I DISCUSS

— MONETARY INDICATORS,

— BANK ING SECTOR INDICATORS, AND

— STOCK MARKET PERFORMANCE.

AT THE END OF THIS ARTICLE, A CONCLUSION AND OUTLOOK WILL FOLLOW. Continue reading “BANK OF GHANA MPC NOVEMBER MEETING – PART 3”

BANK OF GHANA MPC NOVEMBER MEETING – PART 2

MPC-Press-Release-Nov.-2019,

Summary_of_Economic__Financial-Data_November-2019

IN BANK OF GHANA MPC NOVEMBER MEETING – PART 2, I WILL DISCUSS FOUR SECTORS.

— FOREIGN EXCHANGE RATES (INTERBANK),

— COMMODITY PRICES,

— EXTERNAL SECTOR DEVELOPMENTS, AND

— GOVERNMENT FISCAL OPERATIONS.

AS USUAL, YOU CAN DOWNLOAD THE DOCUMENTS REFERRED TO FROM THE BEGINNING OF THIS ARTICLE. Continue reading “BANK OF GHANA MPC NOVEMBER MEETING – PART 2”

BANK OF GHANA MPC NOVEMBER MEETING – PART 1

MPC-Press-Release-Nov.-2019 Summary_of_Economic__Financial-Data_November-2019

Summary_of_Economic__Financial-Data_November-2019

BANK OF GHANA MPC NOVEMBER MEETING – PART 1

THE MONETARY POLICY COMMITTEE (MPC) OF THE BANK OF GHANA (BOG) HELD ITS NOVEMBER MEETING LAST WEEKEND. IT ALSO PUBLISHED THE SUMMARY OF THE ECONOMIC AND FINANCIAL DATA FOR GHANA NOVEMBER 2019. YOU CAN DOWNLOAD BOTH DOCUMENTS FROM THE TOP OF THIS ARTICLE.

IN THE FIRST PART, I’LL COMMENT BRIEFLY ON THE PRESS RELEASE OF THE MPC. THEN I’LL DISCUSS PRICE DEVELOPMENTS, REAL SECTOR INDICATORS, AND MONEY MARKET RATES. Continue reading “BANK OF GHANA MPC NOVEMBER MEETING – PART 1”

WHAT PERSPECTIVE DOES THE BUDGET 2020 GIVE TO GHANA?

 

2020-Budget-Statement-and-Economic-Policy

WHAT PERSPECTIVE DOES THE BUDGET 2020 GIVE TO GHANA?

THAT IS THE QUESTION MOST GHANAIANS ASK THEMSELVES AFTER THE READING LAST WEEK.

NOW DON’T EXPECT FROM ME A COMPLETE ANALYSIS OF THE CA. 260 PAGES DOCUMENT – INCLUDED APPENDICES. YOU CAN DOWNLOAD THE WHOLE DOCUMENT AT THE BEGINNING OF THIS ARTICL E.

BUT APART FROM LISTING THE ACHIEVEMENTS OF THE GOVERNMENT WITHIN THE LAST THREE YEARS, THE BUDGET IS FULL OF PROJECTS FOR 2020 AND BEYOND. BE IT THE IMPROVEMENT OF THE RAILWAY INFRASTRUCTURE OR THE 1D1F INITIATIVE, ALL ARE VERY AMBITIOUS.

MOST OF THE ECONOMICAL DATA ARE POSITIVE AND IN LINE WITH THE RESEARCHES OF THE BANK OF GHANA. THE NEWEST IS THE CURRENT INFLATION RATE. AFTER THE REBASE OF THE UNDERLINED BASKET, THE RATE DECREASED FROM 7.8% TO 7.7% (SEE https://www.bog.gov.gh/) THIS IS ALREADY FURTHER BELOW THE INFLATION TARGET OF 8+/-2%.

THE GDP GROWTH IS SURELY WITHIN THE FORECAST OF INSTITUTIONS LIKE THE IMF OR THE WORLD BANK. SOME ARTICLES IN THE GHANAIAN PRESS DOUBT THAT TO ACHIEVE A TARGET OF 6.8% IS REALISTIC. ON THE OTHER HAND, THE INSTITUTIONS HAVE ALREADY DOWNGRADED THE ESTIMATE. THEREFORE, 6.8% GDP GROWTH SEEMS TO BE REALISTIC.

THERE ARE SOME COMPONENTS THAT MIGHT GIVE SOME PEOPLE A LITTLE HEADACHE. ONE OF THEM IS THE DEPRECIATION OF THE CEDI. AFTER SOME DAYS OF STABILISATION, THE CEDI LOST SOME GROUND AGAIN IN THE LAST DAYS.

NEVERTHELESS, I DON’T SEE ANY REASON TO PANIC RIGHT NOW. THE GOVERNMENT HAS INTRODUCED SEVERAL INITIATIVES THAT WILL MAKE SURE THAT WE MUST IMPORT LESS PRODUCTS. OF COURSE, THAT WILL PROBABLY LEAD TO PROTESTS OF SOME IMPORTERS. EVEN THE GOVERNMENT CANNOT MAKE EVERYONE HAPPY. BUT PROJECTS LIKE PLANTING FOR FOOD AND JOBS WILL LEAD TO MORE DOMESTIC PRODUCTION OF THINGS THAT ARE NEEDED HERE. THIS, IN TURN, WILL LEAD TO LESS EXPENDITURE OF FOREIGN CURRENCY, ESPECIALLY THE US-DOLLAR. AND THIS WILL SURELY STABILISE THE LOCAL CURRENCY.

FURTHERMORE, THE BFT ONLINE PUBLISHED AN ARTICLE TODAY. IN THIS ARTICLE, THE DIRECTOR OF ISSER EXPECTS THE GOVERNMENT TO MISS THE FISCAL DEFICIT TARGET. https://thebftonline.com/2019/economy/its-likely-govt-will-slip-in-deficit-target-prof-quartey/

THIS TARGET STANDS AT 4.7%, AND THE TARGET IS BASED ON THE FISCAL RESPONSIBILTY ACT. THE DIRECTOR BASES HIS OPINION ON THE ASSUMPTION THAT 2020 IS AN ELECTION YEAR. THIS, SO THE DIRECTOR, WILL PUT THE GOVERNMENT UNDER FISCAL PRESSURE. HE THINKS THAT IT WAS ALWAYS LIKE THAT IN ELECTION YEARS.

I REALLY DON’T KNOW WHY IT MUST BE LIKE THAT BECAUSE IT WAS ALWAYS LIKE THAT. THE GOVERNMENT IS NOW BOUND TO THE FISCAL RESPONSIBILITY ACT. WAIT AND SEE WHETHER THE GOVERNMENT KEEPS TO THE LEGAL BASIS. IF NOT, YOU CAN CRITICISE THE GOVERNMENT LATER.

I SEE THE MOST IMPORTANT PROBLEM FOR THE GOVERNMENT IN THE REVENUE GENERATION. HERE, THE GOBERNMENT WANTS TO BROADEN THE TAX BASE. THIS IS A GOOD START, AND WILL HOPEFULLY BE SUCCESSFUL.

SOME DISTRICTS HAVE ALREADY BOUGHT A SOFTWARE THAT TAXES MONIES AT THE SOURCE, IF THIS SOFTWARE IS IMPLEMENTED SUCCESSFULLY, IT WILL HELP TO CONTROL REVENUE COLLECTION AT THE BASE.

IN ALL, I AM OF THE OPINION THAT THE GOVERNMENT IS ON THE RIGHT PATH TO TRANSFORM THE ECONOMY. NOW IT’S THE TIME FOR THE POPULACE NOT ONLY TO BENEFIT FROM THIS TRANSFORMATION. GOVERNMENT, NO MATTER FROM WHICH PARTY, CANNOT DO ANYTHING WITHOUT THE SUPPORT OF THE PEOPLE.

WHAT PERSPECTIVE DOES THE BUDGET 2020 GIVE TO GHANA? THE BUDGET WILL ONLY GIVE THE PERSPECTIVE THAT YOU SUPPORT.

IT IS YOUR COUNTRY!

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BUSINESS MANAGEMENT FOR START-UPS – AN INTRODUCTION

starting-a-business-from-0-in-the-digital-era

BUSINESS MANAGEMENT FOR START-UPS – AN INTRODUCTION

WHY THAT?

I HAVE WATCHED A LOT OF SMALL AND MICRO BUSINESSES IN GHANA SINCE I AM RESIDENT HERE. ESPECIALLY, THERE WERE A NUMBER OF PETTY TRADERS AMONG THEM. MANY OF THEM COLLAPSE EVEN AFTER A FEW MONTHS. WHAT ARE THE REASONS BEHIND THE COLLAPSES? Continue reading “BUSINESS MANAGEMENT FOR START-UPS – AN INTRODUCTION”