Current developments on the Ghana Stock Exchange (GSE) show the local bourse will record poor performance for the second consecutive year.
This is the assertion of managers of the market.
“On the back of performances of these listed companies that have been subdued in recent times as well as the in the difficult macroeconomic environment, we have so many investors move from the equity market to the fixed market and demand has also been very low as far as the equity market is performed,” the Managing Director of the Ghana Stock Exchange, Kofi Yamoah told citibusinessnews.com.
He added, “It explains the fact that the equity market has been seriously down in 2016, this is the second year of negative territory for the equity market.”
In 2015, a similar performance was recorded when the Ghana Stock Exchange ended the year poorly recording a negative growth of 25.60 percent return for investors in dollar terms.
The exchange in cedi terms for the same period also posted a negative 11.77 percent for investors.
In the period, the dismal performance of the exchange was attributed to the poor economic fundamentals driven largely by unstable currency, high inflation, and interest rates, as well as the power outage which hit hard the manufacturing firms.
Meanwhile, the GSE Boss explains to Citi Business News he is optimistic the market will pick up as interest rates go down.
According to him, the confidence is viewed against the backdrop of signals of a stable currency and declining inflation and interest rates.
“Hopefully because interest and inflation rates are trending downwards plus stability in the foreign exchange front, I expect the companies that have been afflicted in this regard to perform better going into the future and then we can see some of these investors coming back to the equity market,”
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(Via: CitiFM Online Ghana)