February 01, 2021 - BY Admin

GHANA STOCK EXCHANGE 2021 - ONE-TIME HIGHLIGHT OR CHANGE OF THE TREND?

WORLDWIDE, THE STOCK EXCHANGES  REACH  NEW PERFORMANCE HEIGHTS. THIS IS OFTEN IN OPPOSITION TO THE DEVELOPMENT OF THE MAIN STREAM ECONOMIES. A GOOD EXAMPLE FOR THAT ARE THE UNITED STATE OF AMERICA. THERE, THE PERFORMANCE OF THE FINANCIAL MARKETS IS MORE OR LESS IN COMPLETE OPPOSITE TO THE PERFORMANCE OF THE MAINSTREAM ECONOMY. THE LATTER IS IN A K-FORM DEVELOPMENT, WHICH MEANS THAT AFTER THE CRASH OF THE ECONOMY, THE RECOVERY GOES ACCORDING TO THE PRINCIPLE "THE RICH GETTIMG RICHER, AND THE POOR GETTING POORER". THIS FACT REFLECTS IN THE U.S. FINANCIAL MARKETS AGAIN, AS THE ONES THAT PROFIT FROM RECORD STOCK MARKETS ARE ALREADY RICH.

NOW WE ARE GETTING BACK TO THE GHANA STOCK EXCHANGE AND ITS TWO INDICES, THE COMPOSITE AND THE FINANCIAL. BOTH OF THEM HAVE HAD A VERY BAD YEAR IN 2020, AS THEY BOTH RECORDED DOUBLE DIGIT LOSSES. THAT HAS CHANGED SINCE THE BEGINNING OF THE NEW YEAR. BOTH INDICES RECORDED A YEAR-TO-DATE GAIN OF 4.41  PERCENT. THAT IS A TOTAL TURNAROUND COMPARED WITH 2020. 

AND THIS DEVELOPMENT NOW REFLECTS ALSO IN THE OVERALL ECONOMY IN GHANA. A FIRST GLANCE AT THE NEW] EST "SUMMARY OF ECONOMICAL AND FINANCIAL DATA" [A THOROUGH ANALYSIS WILL FOLLOW LATER] SHOWS THAT CONSUMER COMFIDENCE AS WELL AS BUSINESS CONFIDENCE HAVE RISEN TO NEW HEIGHTS IN DECEMBER 2020 IT IS TRUE THAT THE INFLATION RATE HAS RISEN TO 10.4 PERCENT. BUT THAT IS PROBABLY DUE TO THE CHRISTMAS SEASON WHERE PRICES USUALLY INCREASE. THEREFORE, WE CAN NOTWITHSTANDING A MORE THOROUGH ANALYSIS  ASSUME THAT THE ECONOMY IS ON THE RIGHT PATH, AND UNLIKE IN THE U.S.A. AND OTHER COUNTRIES, THE FINANCIAL  MARKEYS IN GHANA FOLLOW THE REAL ECONOMY.

OF COURSE, THERE IS STILL THE DANGER OF THE PANDEDMIC INFLUENCING THE ECONOMY. BUT THE PAST HAS SHOWN THAT THE GOVERNMENT IS ABLE TO HANDLE THE ECONOMY DESPITE THE PANDEMIC, AND I AM COMFIDENT THAT THEY WILL BE ABLE TO ALSO DO SO IN FUTURE.

THEREFORE, I AM ALSO CONFIDENT THAT THE FINANCIAL MARKETS IN GHANA WILL HAVE A POSITIVE FUTURE. THAT DOES NOT MEAN THAT FOR THE REST OF THE YEAR, WE WILL ONLY SEE THE FINANCIAL MARKETS IN GHANA GOING UP. IT ONLY MEANS THAT THE COMPOSITE AS WELL AS THE FINANCIAL WILL END THE YEAR 2021 IN POSITIVE TERRITORY.

I'LL  BET ON IT...