OUTLOOK FOR FINANCIAL MARKETS AND ECONOMY IN GHANA

OUTLOOK FOR FINANCIAL MARKETS AND ECONOMY IN GHANA  MUCH DEPENDS ON EXTERNAL FACTORS. THIS IS GENERALLY TRUE FOR ALL EMERGING MARKETS. AS IMPORTERS HAVE TO PAY MOST OF THEIR GOODS IN US-DOLLARS, IMPORTS BECOME MORE EXPENSIVE WHEN THE DOLLAR IS STRONG. ON THE OTHER HAND, A WEAKER DOLLAR MAKES IMPORTS CHEAPER. THE SAME ACCOUNTS FOR EXTERNAL DEBTS. FOR DOLLAR-DENOMINATED BONDS, INTEREST IS HIGHERW HEN THE DOLLAR IS STRONG. WHEN THE DOLLAR IS LOWER, INTEREST IS ALSO LOWER. HOW DOES THE NEAR-TO-MID FUTURE LOOK LIKE NOW FOR EMERGING MARKETS, INCLUDED GHANA?  Continue reading “OUTLOOK FOR FINANCIAL MARKETS AND ECONOMY IN GHANA”

GHANA STOCK EXCHANGE WEEK FROM 21-01-19 TO 25-01-19

IT SEEMS – AT LEAST I HOPE SO – THAT THIS TIME I WAS RIGHT WITH MY PREDICTIONS. SOME TIME AGO, I SAID THAT THE GSE INDEXES HAVE PROBABLY FOUND THEIR BOTTOM AT 2,500 AND 2,100 RESPECTIVELY. LAST  WEEK, THE COMPOSITE ENDED AT2,511 – ALTHOUGH A LITTLE BIT LOWER THAN THE DAY BEFORE. THE FINANCIAL, ON THE OTHER HAND, FINISHED THE WEEK AT 2,125, A LITTLE BIT HIGHER THAN ON THURSDAY – ALL FIGURES COURTESY OF https://gse.com.gh. BOTH INDEXES HAD ONLY A SLIGHT FLUCTUATION DURING THE WEEK.

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THE FINANCIAL MARKETS IN GHANA – ABSA REPORT

absa-africa-financial-markets-index-2018

ABSA, A SOUTH AFRICA-BASED FINANCIAL INSTITUTION WITH BRANCHES IN VARIOUS AFRICAN COUNTRIES, HAS FOR THE SECOND TIME PUBLISHED AN INDEX ABOUT FINANCIAL MARKETS IN AFRICA. IN THE FIRST INDEX, 17 AFRICAN COUNTRIES BUILT UP THIS INDEX; THIS TIME THEY WERE 20. SENEGAL, CAMEROON AND ANGOLA WERE ADDED COMPARED WITH THE FIRST EDITION.

THE INDEX IS BASED ON SIX PILLARS. THESE ARE:

  1. MARKET DEPTH,
  2. ACCESS TO FOREIN EXCHANGE,
  3. MARKET TRANSPARENCY, TAX AND REGULATORY ENVIRONMENT,
  4. CAPACITY OF LOCAL INVESTORS,
  5. MACROECONOMIC OPPORTUNITY, AMD
  6. LEGALITY AND ENFORCEABILITY OF STANDARD FINANCIAL MARKET MASTER AAGREEMENTS.

THE RESULTS OF THE VARIOUS PILLARS FOR EACH COUNTRY WERE THEN ADDED. THEN THESE NUMBERS WERE THEN DIVIDEDD BY TH NUMBERS OF PILLARS, SIX.

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THE SITUATION OF THE BANKING SECTOR IN GHANA

THERE IS NO DAY PASSING WITHOUT A DISCUSSION OR NEWS ABOUT THE SITUATION OF THE BANKING SECTOR IN GHANA. THE FINANCIAL OF THE GHANA STOCK EXCHANGE HAS A LONG-RUN DOWNWARDS TREND. AND THE FACT THAT THE GOVERNOR OF THE BANK OF GHANA HAS TO MAKE A STATEMENT THAT THE CENTRAL BANK WILL GO ON ISSUING LICENSES WILL SURELY ALSO NOT CALM THE SITUATION.READ FOR THIS http://www.thebftonline.com Continue reading “THE SITUATION OF THE BANKING SECTOR IN GHANA”

US STOCKS ARE GOING DOWN – WHAT SHOULD INVESTORS DO?


THE INTELLIGENT INVESTOR

 

THE US STOCKS HAD A VERY BAD DAY YESTERDAY. ALL MAJOR INDECES LOST MORE THAN 3%. ON TOP WAS THE NASDAQ – THE TECH MARKET – THAT LOST OVER 4%. WHAT ARE THE REASONS, AND WHAT IS  THERE TO DO AS INVESTORS?
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GOLD REFINERY, AND OTHERS…

TODAY, I WILL FOCUS ON VARIOUS ISSUES WITH SMALL COMMENTS. USUALLY HERE IN THIS COUNTRY, DISCUSSIONS REPEAT THEMSELVES. THEREFORE, MY COMMENTS WON’T CHANGE MUCH, UNLESS I CHANGE MY OPINION. THIS DOES NOT HAPPEN VERY OFTEN CONCERNING THE MAJOR ECONOMICAL AND FINANCIAL ISSUES.

HERE ARE MY THREE ITEMS FOR BRIEF COMMENTS TODAY, GOLD REFINERY, SAVINGS&LOANS COMPANIES, AND CEDI WEAKNESS:

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GHANA MONETARY POLICY PRESS RELEASE 09-2018

SUMMARY OF ECONOMIC AND FINANCIAL DATA SEPTEMBER 2018

THE MONETARY POLICY COMMITTEE OF THE BANK OF GHANA HELD ITS REGULAR MEETING IN SEPTEMBER. AFTERWARDS, THE CENTRAL BANK ISSUED A PRESS RELEASE INCLUDING AN OVERVIEW OF THE MAIN ECONOMICAL DATA. ALSO, THE CENTRAL BANK PUBLISHED ITS DECISION TO LEAVE THE MONETARY POLICY RATE AT 17%. LET US HAVE A LOOK AT THE OBSERVATIONS OF THE BANK OF GHANA:  Continue reading “GHANA MONETARY POLICY PRESS RELEASE 09-2018”

GHANA LIVING STANDARD SURVEY 2018

 

LAST SATURDAY, THE GHANA STATISTICAL SERVICE PUBLISHED THE GHANA LIVING STANDARD SURVEY 2018. ALTHOUGH THE SERVICE IS NOT ON THE WEBSITE, WE CAN TAKE SOME INFORMATION UPFRONT. FIRST, THERE IS A SMALL DECLINE IN THE POVERTY LEVEL IN GHANA SINCE THE LAST SURVEY 2013. THE DROP HAS BEEN FROM 24.2% IN 2013 TO 23.4% IN 2018. WE SEE, THAT THERE IS A DROP, ALTHOUGH RATHER SMALL. INFORMATION THAT POVERTY IN GHANA HAS INCREASED, IS SO FAR NOT TRUE. SECOND, ALTHOUGH THE POVERTY LEVEL HAS DECLINED, THE INEQUALITY GAP HAS WIDENED. WHAT ARE THE CONSEQUENCES OF THIS FOR GHANA? Continue reading “GHANA LIVING STANDARD SURVEY 2018”