GHANA STOCK EXCHANGE WEEK FROM 01-10-18 TO 05-10-18

THE GHANA STOCK EXCHANGE (GSE) WAS – WITH ALL DUE RESPECT – PERFORMING BORINGLY THIS WEEK. THE COMPOSITE HAD A ROLLER COASTER RIDE AND ENDED THE WEEK ALMOST AT THE WEEK HIGH – AT 3,052.31. ON THE OTHER HAND, THE FINANCIAL HARDLY MOVED AT ALL. THE RANGE WAS BETWEEN 2,629 AND 2,631 – EXCITING! THE ROLLER COASTER RIDE OF THE COMPOSITE WAS PROBABLY THE MOST THRILLING EVENT OF THE WEEK. IF SOME PEOPLE MIGHT HAVE THOUGHT BY THE MIDDLE OF THE WEEK THAT THE COMPOSITE MIGHT GO DOWN FURTHER, THEY WERE SURELY WRONG. OBVIOUSLY, THERE WERE ONLY A FEW INVESTORS WHO TOOK THE OPPORTUNITY OF THE RISE OF THE WEEK BEFORE. THEY SIMPLY CASHED THE GAINS.

CONSEQUENTLY, WE CAN EXPECT THE COMPOSITE GO UP FURTHER IN THE COMING WEEKS, ALTHOUGH NOT IN A STRAIGHT LINE.  JUST LIKE THIS WEEK, THERE WILL ALWAYS BE SOME INVESTORS REALISING THEIR GAINS. THAT MEANS THAT THE GSE WILL ALWAYS SHOW SOME DAYS ON WHICH THE INDEX WILL GO DOWN. BUT THE GENERAL TREND WILL SURELY GO UPWARDS. OR, AS WARREN BUFFETT WOULD SAY: “DO NOT LET THE DAILY MOVEMENT OF THE STOCK EXCHANGE BLEND YOU. CHOOSE THE STOCKS WHICH ARE UNDERPRICED, AND PUT YOUR EGGS INTO THESE STOCKS FOR A LONG TIME INVESTMENT.”

WHAT SHALL I SAY ABOUT THE FINANCIAL? IT SEEMS THAT THE INDEX HAS FOUND ITS BOTTOM AT ABOUT 2,630. CONSEQUENTLY, THAT MEANS THAT FROM HERE IT COULD ONLY GO UPWARDS. IN THIS CONTEXT, IT IS POSITIVE TO NOTE THAT THE SECURITY AND EXCHANGE COMMISSION (SEC) HAS ENCOURAGED MORE BANKS TO GO PUBLIC. FOR MORE INFORMATION ABOUT THIS, READ THE ARTICLE IN THE BUSINESS & FINANCIAL TIMES ONLINE ( https://thebftonline.com  )

MORE BANKS LISTING ON THE GSE WOULD MEAN A STRENGTHENING OF THEIR CAPITAL BASE, AMONG OTHER ADVANTAGES. AND THIS, IN CONSEQUENCE, WOULD MEAN A WEAKENING OF THE DANGER OF A FINANCIAL CRISIS. LET’S HOPE THAT MORE BANKS WILL FOLLOW THE ADVICE OF THE SEC. THEN, ALSO THE FINANCIAL WILL MOVE TO MORE BLOSSOMING HEIGHTS AGAIN.

SEE YOU NEXT WEEK!

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