GHANA STOCK EXCHANGE WEEK FROM 03-12-18 TO 06-12-18

THE GHANA STOCK EXCHANGE WEEK FROM 03-12-18 TO 06-12-18 CONTINUED THE WAY DOWN IT HAS STARTED SOME WEEKS AGO.

THE COMPOSITE ENDED THE WEEK AT 2,608, AND THE FINANCIAL EXACTLY 400 POINTS LOWER AT 2,208. (SEE https://gse.com.ghWHEN WILL IT EVER END? THE DOWNWARD TREND ON THE GHANA STOCK EXCHANGE, I MEAN. EXCEPT FOR ONE DAY, A SMALL GLIMPSE OF HOPE, THE TREND CONTINUED DOWN. AND THIS, ALTHOUGH THE FUNDAMENTALS AT LEAST OF THE “BLUE CHIPS” ON THE GSE ARE QUITE GOOD. THIS IS ESPECIALLY MORE AND MORE TRUE FOR THE FINANCIAL SECTOR. AS THE 31ST OF DECEMBER COMES NEARER – AND WITH THAT THE DATE BANKS HAVE TO ADJUST THEIR STATED CAPITAL TO 400 MILLION CEDIS – THE BANKING SECTOR CONSOLIDATES.

THE LATEST EVENT IN THIS DIRECTION IS THE MERGER BETWEEN ENERGY COMMERCIAL BANK AND FIRST ATLANTIC BANK ON 10TH DECEMBER. BEFORE, OMNI BANK AND SAHEL SAHARA BANK GOT THE PERMISSION TO MERGE IN SEPTEMBER 2018. ALL THESE MERGERS SERVE THE PURPOSE TO MAKE THE BANKING SECTOR IN GHANA STRONGER AND MORE EFFICIENT. WE CAN EXPECT THAT AFTER THE DEADLINE OF 31ST DECEMBER, THE FINANCIAL CAN STABILISE. AFTER THIS DATE, WE WILL SEE WHICH BANKS SURVIVED AND WHICH NOT. I ONLY HOPE THAT THE CUSTOMERS OF THE BANKS THAT WON’T MAKE IT WON’T SUFFER FROM THE FAILURE.

THE COMPOSITE IS A DIFFERENT ISSUE.. IT SUFFERS FROM A DOUBLE-EDGED INSECURITY. ON ONE HAND, THERE IS STILL THE PRESSURE ON DEVELOPING MARKETS FROM THE INTERNATIONAL SITUATION. DESPITE THE RECENT TURNDOWN OF THE U.S.-AMERICAN MARKETS, THERE IS STILL THE DANGER OF ANOTHER INTEREST HIKE BY THE FED. THIS INTEREST HIKE WILL THEN EFFECT THE DEVELOPING MARKTS FURTHER NEGATIVELY.

ON THE OTHER HAND, THERE IS FURTHER INSECURITY ON THE DOMESTIC PLATFORM. THIS DOMESTIC INSECURITY REFLECTS IN THE BUSINESS AND THE CONSUMER CONFIDENCE INDEXES. BOTH HAVE RECENTLY GONE DOWN FOR 3 MONTHS IN A ROW. IT SEEMS THAT THE DEVELOPMENT OF THE ECONOMY IN GHANA DOESN’T GO FAST ENOUGH FOR MANY PEOPLE AND ENTERPRISES.

HAVE PATIENCE, PEOPLE; THE TERM OF THE CURRENT GOVERNMENT STILL LASTS FOR ANOTHER 2 YEARS. ONLY THEN, EVERYBODY CAN JUDGE FOR HIM- OR HERSELF WHETHER THE GOVERNMENT HAS FOLLOWED THE RIGHT PATH OF DEVELOPMENT.

CONSEQUENTLY, LET’S ENJOY THE PRE-CHRISTMAS AND NEW YEAR TIME. IN THE NEW YEAR, THERE WILL BE A NEW START, ALSO ON THE GHANA STOCK EXCHANGE. AND I AM CONFIDENT THAT A NEW START  WILL BRING A NEW, POSITIVE, DEVELOPMENT.

STAY TUNED!

 

Leave a Reply