GHANA STOCK EXCHANGE WEEK FROM 15-10-18 TO 19-10-18

THE GHANA STOCK EXCHANGE WEEK FROM 15-110-18 TO 19-10-18 WAS DISAPPOINTING AGAIN. THE COMPOSITE AS WELL AS THE FINANCIAL ENDED THE WEEK ON THE LOWEST POINTS. SEE FOR DETAILS https://gse.com.gh/  THE COMPOSITE CLOSED THE WEEK AT 2,975, 1 POINT LESS THAN AT THE BEGINNING OF THE WEEK. THAT IN ITSSELF WOULD NOT BE A REASON FOR CONCERN. THE REASON FOR CONCERN IS THAT THE COMPOSITE ROSE TO NEARLY 3,000 BY THE MIDDLE OF THE WEEK, ONLY TO FALL DOWN AGAIN TO ITS FORMER TERRITORY BY THE END OF THE WEEK. THIS SHOWS A KIND OF VOLATILITY THAT MIGHT NOT BE GOOD FOR THE MARKETS.

IT MIGHT ALSO BE THAT THE UNFAVOURABLE SITUATION FOR EMERGING MARKETS NOW SPREADS TO THE GHANA STOCK EXCHANGE. THE STRONG DOLLAR MAKES IT DIFFICULT FOR DOMESTIC IMPORTERS TO PAY FOR NECESSARY GOODS. TO JUDGE THE REAL REASON BEHIND THE VOLATILITY OF THE STOCK MARKET, WE MUST WAIT FOR THE DEVELOPMENTS IN THE FOLLOWING WEEKS.  THE FACT THAT I OFTEN USE THE WORDS “WOULD” OR “COULD” SHOWS THAT THE FUTURE IS SOMEWHAT UNCERTAIN. LET US WAIT AND SEE…

THE ONLY POSITIVE JUDGMENT THAT WE CAN SAY ABOUT THE FINANCIAL IS THAT ITS MOVEMENT RETURNED TO THE SAME PATTERN AS THE COMPOSITE. IT STARTED THE WEEK AT 2,543. THAT WAS 10 POINTS HIGHER THAN AT THE END OF THE WEEK. FURTHERMORE, IT HAD THE SAME HUNCHBACK IN THE MIDDLE OF THE WEEK AS THE COMPOSITE HAD. BY WEDNESDAY, THE FINANCIAL ROSE TO 2,555, ONLY TO FALL DOWN AGAIN TOWARDS THE END OF THE WEEK. FOR THE FINANCIAL, I AM NOT READY TO SPEAK ABOUT VOLATILITY. THIS IS BECAUSE THE FINANCIAL GENERALLY ONLY HAD ONE TREND IN THE LAST WEEKS. THIS TREND POINTED DOWNWARDS.

THE SAME WAY AS WE JUDGED THE COMPOSITE, WE MUST ALSO SEE HOW THE FINANCIAL DEVELOPS IN THE WEEKS TO COME. THE MOST IMPORTANT QUESTION IS WHERE THE FINANCIAL WILL FIND ITS BOTTOM LINE.

AS BEFORE, WE WILL SEE ON https://www.recklingblog.com

 

 

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