The head of research at Databank says that the outcome of the general election will have an important impact on the Ghana stock market performance. It is going to determine the important investment choices of investors.
This year alone the people who have invested with GSE have incurred GHc3.69 billion loss. Besides, the market value has declined from GHc 56.79 billion to GHc 53.1 this year alone. The current global pandemic and the lingering effects of the financial sector have greatly contributed to this loss.
The return on the composite Index is at -19.36% before the end of trading. Speaking during an interview Boahen said, “After next week, we will have a clear picture of where the market is heading. This will give us some indication of what we are likely to see in the market in 2021.”. “Investors are waiting to come back to the market to take advantage of the current attractive market valuations; however, they are waiting to see the outcome of the 2020 general elections.”
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Boahen said that foreign investors’ holdings have declined in many current markets such as Ghana because of Covid-19.
“When the upcoming election is over, the market will begin to see some level of improvement in sentiments, leading to a positive recovery in the performance.”
He revealed that from the beginning of the second quarter the percentage of dropping performance of exchange has slowed down. “The market saw it’s the worst performance in the second quarter when it lost over 12 percent of its value. During the first quarter, the GSE lost about 4%; however, this has declined consistently to about 1% in November.”
MTN stocks have been the key factor in terms of market activities. “on a week-on-week basis, TN stocks account for more than 70% of the value and volume of shares traded on the market. However, this has not reflected in the wholesome performance of the market,” Databank research stated.
