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Positive economic outlook to improve fortunes of GSE – BoG Governor

56376867 Dr Ernest Addison, Governor of BoG

Fri, 17 Mar 2023 Source: thebftonline.com

The Governor of the Bank of Ghana, Dr. Ernest Addison, is confident that the positive economic outlook would improve the fortunes of the Ghana Stock Exchange despite recent sluggish performance of the local bourse.

The GSE’s Composite Index (GSE-CI) recorded a decrease of about 13 percent as of the end of last year, compared to a 43.66 percent gain for 2021.

However, Dr. Addison said: “The outlook of the economy remains positive and hopefully, a robust economy would improve the fortunes of GSE”.

He said this when a five-member delegation, led by the Managing Director (MD) of the Ghana Stock Exchange (GSE), Abena Amoah, paid a courtesy call on him in Accra.

Already, analysts, including those at Databank Research, are forecasting that the market could return as much as 12 percent to investors this year.

Governor Addison noted that the Domestic Debt Exchange Programme (DDEP) is to facilitate fiscal consolidation, and indicated that the objective is to achieve macroeconomic stability and sustainable growth.

He further stated that the private sector has a key role to play in the transformation of the economy and that private sector investments must lead, with the state providing an enabling environment. He added that the lessons from the current economic events will inform this shift.

The governor also urged the GSE to collaborate with the ARB Apex Bank Limited to promote the idea of having rural and community banks listed.

In her remarks, GSE’s MD highlighted the decrease in equities trading on the local bourse of about 13 percent in 2022, compared with 2021. However, she pointed out that the largest value of about GH¢1.3billion was traded in 2022. This, she said, was attributed to MTN Ghana floating more of its shares on the stock exchange.

The MD added that about GH¢230billion was traded in securities, which, in comparison with the previous year, was low.

She informed the governor that in 2022, GSE was admitted as a full member of the World Federation of Stock Exchangers, placing GSE at par with the major players in the global stock exchange space.

Commenting on the impact of the Domestic Debt Exchange Programme (DDEP) on the GSE, the MD stated that the DDEP being implemented by the government, as a condition for the International Monetary Fund (IMF) bail-out programme, had eroded investor confidence in the country.

To bolster investor confidence, the MD highlighted the need for increased financial literacy engagements, availability of sufficient investment information, and the diversification of products on the market.

On the foreign exchange market, the MD stated that it is the intention of GSE to liaise with the central bank and other stakeholders to form a committee for the formalisation of the foreign exchange market.

The Governor congratulated Ms. Abena Amoah on her appointment as MD of GSE and expressed confidence in her ability to ensure a seamless transition from her predecessor, given her experience in the sector.

In the governor’s team were the First Deputy Governor, Dr. Maxwell Opoku-Afari, and the Directors of Financial Markets, Research, Governors’ Departments and other officials of the bank.

The MD of the GSE was accompanied by the Acting Deputy Managing Director, Frank Berle; the Head of the Ghana Fixed Income Market, Augustine Simons; the Head of Strategy and International Relations, Diana Okine; and the Head of Marketing & Public Relations, Jerry Boachie-Danquah.

Source: thebftonline.com
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